Family Ownership During the COVID-19 Pandemic

46 Pages Posted: 27 Jan 2021 Last revised: 2 Dec 2021

See all articles by Mario Daniele Amore

Mario Daniele Amore

Bocconi University - Department of Management and Technology

Fabio Quarato

Bocconi University

Valerio Pelucco

Bocconi University

Multiple version iconThere are 2 versions of this paper

Date Written: December 1, 2021

Abstract

A growing literature is devoted to understand how companies react to major external shocks. Contributing to this research, we study how the presence of families in corporate ownership and leadership affected the reaction of firms to the COVID-19 pandemic. Using data from Italy, we find that family firms exhibited higher market performance and operating profitability than other firms during the pandemic period. This result is stronger for companies without relevant minority investors and with multiple family shareholders. Delving into the mechanisms, we show that the outperformance of family firms is driven by a more efficient use of labor and a lower drop in revenues. Collectively, our results expand existing research by showing how family ties shape the response to adverse events.

Keywords: Family Business, COVID-19, Performance, CEOs

JEL Classification: G34, D10

Suggested Citation

Amore, Mario Daniele and Quarato, Fabio and Pelucco, Valerio, Family Ownership During the COVID-19 Pandemic (December 1, 2021). Journal of Banking and Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3773430 or http://dx.doi.org/10.2139/ssrn.3773430

Mario Daniele Amore (Contact Author)

Bocconi University - Department of Management and Technology ( email )

Via Roentgen 1
Milan, MI 20136
Italy

Fabio Quarato

Bocconi University ( email )

Via Sarfatti, 25
Milan, MI 20136
Italy

Valerio Pelucco

Bocconi University ( email )

Via Sarfatti, 25
Milan, MI 20136
Italy

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