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Large Blockholders: Do Families Differ from Others


  • Praet, Alain

    () (Hogeschool-Universiteit Brussel (HUB), Belgium)


Using a matched-pairs methodology, I compare the impact of two different types of blockholders on the performance of the firms they control. The results reveal that independent family firms perform better than similar subsidiaries of Belgian financial holding companies over a 14-year period. Even when ultimate ownership is controlled for, the results still hold. Family-owned firms will also prefer labor intensive production to avoid the loss of control. In sum, families seem to have capabilities that are not easily replicated by other blockholders.

Suggested Citation

  • Praet, Alain, 2009. "Large Blockholders: Do Families Differ from Others," Working Papers 2009/22, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
  • Handle: RePEc:hub:wpecon:200922

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    References listed on IDEAS

    1. Eric Jondeau & Jean-Guillaume Sahuc, 2008. "Optimal Monetary Policy in an Estimated DSGE Model of the Euro Area with Cross-Country Heterogeneity," International Journal of Central Banking, International Journal of Central Banking, vol. 4(2), pages 23-72, June.
    2. Fritz Breuss & Katrin Rabitsch, 2009. "An estimated two-country DSGE model of Austria and the Euro Area," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 36(1), pages 123-158, February.
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    6. Ernest Pytlarczyk, 2005. "An Estimated DSGE Model for The German Economy," Computing in Economics and Finance 2005 318, Society for Computational Economics.
    7. Pau Rabanal, 2006. "Euro-Dollar Real Exchange Rate Dynamics in an Estimated Two-Country Model," Computing in Economics and Finance 2006 87, Society for Computational Economics.
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    More about this item


    Family Firms; Performance; Productivity; Subsidiaries; Financial blockholders;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance


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