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Economic policy uncertainty and the founding family firm premium

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  • Fütterer, Markus
  • Rapp, Marc Steffen
  • Requejo, Ignacio

Abstract

Studying a monthly panel of European listed non-financial firms, we document a negative effect of economic policy uncertainty (EPU) on firm value but a positive effect on the valuation premium of founding family firms. These findings are confirmed in a propensity score–matched sample and remain robust to a battery of tests addressing omitted variable bias and measurement error. The lower EPU-sensitivity of founding family firms is concentrated in politically connected firms operating in low-corruption environments. Additional analyses show that founding family firms' valuation premium is more pronounced for R&D-intensive firms with less diversified and less labor-intensive business models. Overall, our results support the view that founding family firms are more resilient to uncertainty and may contribute to economic stability.

Suggested Citation

  • Fütterer, Markus & Rapp, Marc Steffen & Requejo, Ignacio, 2026. "Economic policy uncertainty and the founding family firm premium," Journal of Corporate Finance, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:corfin:v:98:y:2026:i:c:s0929119926000349
    DOI: 10.1016/j.jcorpfin.2026.102976
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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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