Family firms and financial analyst activity

Nicolas Eugster

Pacific-Basin Finance Journal, 2019, vol. 57, issue C

Abstract: This paper examines the relationship between ownership structure, analyst coverage, and forecast error for the entire population of non-financial companies listed on the Swiss Exchange for the period 2003–2013. The results show a negative association between concentrated ownership and analyst coverage for both family firms and firms held by a nonfamily blockholder. Furthermore, analysts' forecasts are shown to be more accurate for family firms than for other firms, suggesting a better information environment within these companies. This situation can be explained by a better alignment of interests between majority and minority shareholders among family firms.

Keywords: Ownership structure; Concentrated ownership; Family firms; Nonfamily blockholder; Widely held firms; Analyst coverage; Forecast error; Information environment (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Family firms and financial analyst activity (2019)
Working Paper: Family firms and financial analyst activity (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:57:y:2019:i:c:s0927538x17305760

DOI: 10.1016/j.pacfin.2018.03.002

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