IDEAS home Printed from https://ideas.repec.org/a/jfr/ijfr11/v7y2016i2p39-52.html
   My bibliography  Save this article

Are Institutional Investors Beneficial to Family Firm Performance? Evidence from the French Stock Exchange

Author

Listed:
  • Olivier Colot
  • Jonathan Bauweraerts

Abstract

In the context of listed family firms, prior research pointed out that agency problems between majority family owners and minority shareholders are the most prevalent in European countries where shareholders¡¯ protection is weak. This study aims at analysing how the presence of different types of institutional investors alleviates or enhances this form of agency problem. Examining the French stock market (SBF120) over the period 2002-2011, our results indicate that having a family as the first shareholder hampers financial performance. Our findings also reveal that having an institutional investor as second blockholder can be beneficial or detrimental to firm performance. Considering the distinctive nature of institutional investors, this research shows that the combination of a family as the first shareholder and a pressure-insensitive institutional investor as second blockholder exerts a positive influence on firm performance while a negative effect is found when the institutional investor is pressure-sensitive. These results confirm that the nature and the distribution of ownership is particularly important when analysing agency problems in listed firms.

Suggested Citation

  • Olivier Colot & Jonathan Bauweraerts, 2016. "Are Institutional Investors Beneficial to Family Firm Performance? Evidence from the French Stock Exchange," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 7(2), pages 39-52, April.
    • Handle: RePEc:jfr:ijfr11:v:7:y:2016:i:2:p:39-52
    DOI: 10.5430/ijfr.v7n2p39
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/9080/5489
    Download Restriction: no
    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/9080
    Download Restriction: no
    File URL: https://libkey.io/10.5430/ijfr.v7n2p39?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:ijfr11:v:7:y:2016:i:2:p:39-52. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gina Perry (email available below). General contact details of provider: http://ijfr.sciedupress.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.