Founding family ownership, stock market returns, and agency problems

Eugster, Nicolas; Isakov, Dušan

Document type :

Compte-rendu et recension critique d'ouvrage

DOI :

10.1016/j.jbankfin.2019.07.020

Title :

Founding family ownership, stock market returns, and agency problems

Author(s) :

Eugster, Nicolas [Auteur]
Lille économie management - UMR 9221 [LEM]
Isakov, Dušan [Auteur]

Journal title :

Journal of Banking & Finance

Pages :

105600

Publication date :

2019-10

ISSN :

0378-4266

English keyword(s) :

Family firm
Ownership structure
Abnormal returns
Performance
Earnings surprise

HAL domain(s) :

Sciences de l'Homme et Société/Gestion et management

English abstract : [en]

This paper explores the relationship between founding family ownership and stock market returns. Using the entire population of non-financial firms listed on the Swiss stock market for 2003–2013, we find that the stock ...
Show more >This paper explores the relationship between founding family ownership and stock market returns. Using the entire population of non-financial firms listed on the Swiss stock market for 2003–2013, we find that the stock returns of family firms are significantly higher than those of non-family firms after adjusting the returns for different firm characteristics and risk factors. Family firms generate an annual abnormal return of 2.8% to 7.1%. We also document that family firms potentially having more agency problems earn higher abnormal returns. Our evidence suggests that outside investors receive a premium for holding shares of these firms as they are exposed to the specific agency problems present in family firms.Show less >

Language :

Anglais

Popular science :

Non

Collections :

Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL

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