Family Ownership During the COVID-19 Pandemic
38 Pages Posted: 27 Jan 2021
Date Written: January 25, 2021
We study how the involvement of families in ownership and governance positions affects the stock-market and accounting performance of Italian listed firms during the COVID-19 pandemic. We find that firms with controlling family shareholders fared significantly better than other firms throughout the pandemic period. This effect is particularly pronounced for firms in which a family is both the controlling shareholder and holds the CEO position. Delving into the mechanisms, we further show that family firms primarily outperformed in labor-intensive industries. Collectively, our results expand a growing research on the organizational response to adverse events.
Keywords: Family Business, COVID-19, Performance, CEOs
JEL Classification: G34, D10
Suggested Citation: Suggested Citation