Revisiting Family Firms

Journal of Financial and Quantitative Analysis

37 Pages Posted: 1 Apr 2022 Last revised: 17 Sep 2023

Date Written: March 23, 2022


I propose a novel measure to identify family firms based on the number of family links between high-ranking co-workers. Leveraging this measure, I reexamine previous findings in the literature and derive four novel facts: (i) Measures of stock ownership misclassify firms with a large family presence. (ii) Family-run firms exhibit value stock characteristics, whereas founder-CEO firms display growth stock characteristics. (iii) Family-run firms pay lower costs. (iv) Family managers behave myopically. I conclude that failing to consider family links can lead to highly misleading results in the study of family firms.

Keywords: Family firms, family ties, stock ownership, firm profitability

JEL Classification: G32, J24

Suggested Citation

Parise, Gianpaolo, Revisiting Family Firms (March 23, 2022). Journal of Financial and Quantitative Analysis, Available at SSRN: or

Gianpaolo Parise (Contact Author)

EDHEC Business School and CEPR ( email )

393 Promenade des Anglais
Nice, 06200

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