Family Firms and Financial Analyst Activity

Pacific Basin Finance Journal, 2018

44 Pages Posted: 19 Dec 2017 Last revised: 30 Apr 2018

See all articles by Nicolas Eugster

Nicolas Eugster

Catholic University of Lille - IESEG School of Management

Date Written: February 10, 2018


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

JEL Classification: G32, G34

Suggested Citation

Eugster, Nicolas, Family Firms and Financial Analyst Activity (February 10, 2018). Pacific Basin Finance Journal, 2018, Available at SSRN: or

Nicolas Eugster (Contact Author)

Catholic University of Lille - IESEG School of Management ( email )

3 rue de la Digue
Lille, Lille 59000

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