How does family control affect stock price synchronicity?

Zeineb Barka, Ramzi Benkraiem, Taher Hamza and Faten Lakhal ()
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Zeineb Barka: IHEC - Institut des hautes études commerciales (Carthage, Tunisie) - UCAR - Université de Carthage (Tunisie) = University of Carthage
Ramzi Benkraiem: Audencia Business School
Taher Hamza: Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School, IHEC - Institut des hautes études commerciales (Carthage, Tunisie) - UCAR - Université de Carthage (Tunisie) = University of Carthage
Faten Lakhal: IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel, PULV - Pôle Universitaire Léonard de Vinci

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Abstract: This paper examines the effect of family control on the degree of stock price synchronicity. The results reveal that family control has a negative effect on stock price synchronicity, supporting the socioemotional wealth perspective. The results also show that this negative effect of family control on stock price synchronicity is prevalent only for family firms with high analyst coverage and a large institutional investor stake. These results suggest that families disclose more specific information to enhance their reputation and alleviate minority investors' fears of being expropriated when the firm has less information asymmetry and is well monitored.

Keywords: Stock price synchronicity; Family control; Corporate governance; Information environment; Financial crisis (search for similar items in EconPapers)
Date: 2022-10-01
Note: View the original document on HAL open archive server: https://audencia.hal.science/hal-03713069v1
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Citations: View citations in EconPapers (4)

Published in Finance Research Letters, 2022, 49, pp.103092. ⟨10.1016/j.frl.2022.103092⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03713069

DOI: 10.1016/j.frl.2022.103092

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