Ownership Structure and Stock Returns: Analysis of the Impact of Family Shareholding
36 Pages Posted: 1 Aug 2014 Last revised: 17 Nov 2014
Date Written: July 31, 2014
This paper examines the relationship between the ownership structure and the stock returns for a sample of 195 companies listed on the Swiss Exchange for the period 2003-2013. The distinction is made between family firms, widely held firms and those owned by another blockholder, as well as between the generation of the family firm and the active involvement of the family in the management of the company. The results of the study show that differences in the ownership structure of companies have a non-negligible influence on the stock value and investment strategies based on the latter provide significant abnormal returns.
Keywords: family firms, widely held firms, founder, descendant, active family, ownership structure, stock returns, abnormal returns
JEL Classification: G11, G32
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