Family Ownership and Firm Performance: A Closer Look at the Evidence from Public Companies in Chile
AbstractWe revisit the evidence presented in Martinez et al. (2007) using new data and estimation techniques that take into account unobserved firm heterogeneity. The results of the earlier study are found to be robust to the new procedures since performance of family firms continues to be superior to non-family firms. We then add the risk dimension to the earlier analysis using a risk-adjusted ROA variable, and family firms again performed better. A test of the standard deviations of ROA for both firm categories revealed that family firms not only perform better but also show less volatility in their returns.
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Bibliographic InfoPaper provided by Superintendencia de Valores y Seguros in its series Serie de Documentos de Trabajo with number 08.
Length: 23 pages
Date of creation: Feb 2010
Date of revision:
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Postal: Superintendencia de Valores y Seguros, Libertador Bernardo O´Higgins 1449 12th Floor ZIP Code 8340518 - Santiago - Chile
Phone: (56 2) 473 4000
Web page: http://www.svs.cl/
More information through EDIRC
Family firms; performance.;
Find related papers by JEL classification:
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
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NBER Working Papers
8776, National Bureau of Economic Research, Inc.
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