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Family Involvement In Management And Firm Performance: Evidence From Italy

Author

Listed:
  • Lidia Mannarino

  • Valeria Pupo

  • Fernanda Ricotta

    (Dipartimento di Economia e Statistica, Università della Calabria)

Abstract

Using Total Factor Productivity (TFP) as a measure of corporate performance, this study compares the performance of owner management to that of firms run by professional managers over the period 2004-2006. We consider the influence of owner management for the sample as a whole and for subgroups of firms. The findings demonstrate that family run firms are less productive than firms run by professional managers, but the difference between the two is small. Our results support the idea that in Italy there is not a genuine process of manager selection both for family and no-family firms.

Suggested Citation

  • Lidia Mannarino & Valeria Pupo & Fernanda Ricotta, 2011. "Family Involvement In Management And Firm Performance: Evidence From Italy," Working Papers 201103, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    • Handle: RePEc:clb:wpaper:201103
    as

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    File URL: http://www.ecostat.unical.it/RePEc/WorkingPapers/WP03_2011.pdf
    File Function: First version, 2011-03
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    References listed on IDEAS

    as
    1. Navaretti, Giorgio Barba & Faini, Riccardo & Tucci, Alessandra, 2008. "Does family control affect trade performance?: evidence for Italian firms," LSE Research Online Documents on Economics 28509, London School of Economics and Political Science, LSE Library.
    2. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer, 1999. "Corporate Ownership Around the World," Journal of Finance, American Finance Association, vol. 54(2), pages 471-517, April.
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    Cited by:

    1. Siniša Arsić & Koviljka Banjević & Aleksandra Nastasić & Dragana Rošulj & Miloš Arsić, 2018. "Family Business Owner as a Central Figure in Customer Relationship Management," Sustainability, MDPI, vol. 11(1), pages 1-19, December.

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    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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