Revisiting Family Firms

Gianpaolo Parise

No 17822, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: I propose a novel measure to identify family firms based on the number of family links between high-ranking co-workers. Leveraging this measure, I reexamine previous findings in the literature and derive five novel facts: (1) Measures of stock ownership misclassify firms with a large family presence. (2) Family-run firms outperform non-family firms. (3) Differences in valuations between family-run and non-family-run firms are amplified by selection. (4) Family-run firms are more cost-effective. (5) Family managers behave myopically. I conclude that failing to consider family links can lead to highly misleading results in the study of family firms.

Keywords: Family firms; Firm performance; Stock ownership (search for similar items in EconPapers)
JEL-codes: G32 J24 (search for similar items in EconPapers)
Date: 2023-01
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP17822 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:17822

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP17822

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().