Founding‐Family Ownership and Firm Performance: Evidence from the S&P 500

Journal of Finance - Tập 58 Số 3 - Trang 1301-1328 - 2003
Ronald C. Anderson1, David M. Reeb2
1The Kogod School of Business at American University
2Culverhouse College of Commerce at the University of Alabama

Tóm tắt

Abstract

We investigate the relation between founding‐family ownership and firm performance. We find that family ownership is both prevalent and substantial; families are present in one‐third of the S&P 500 and account for 18 percent of outstanding equity. Contrary to our conjecture, we find family firms perform better than nonfamily firms. Additional analysis reveals that the relation between family holdings and firm performance is nonlinear and that when family members serve as CEO, performance is better than with outside CEOs. Overall, our results are inconsistent with the hypothesis that minority shareholders are adversely affected by family ownership, suggesting that family ownership is an effective organizational structure.

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