Family Ownership and Performance: The Net Effect of Productive Efficiency and Growth Constraints

45 Pages Posted: 10 Feb 2005

See all articles by Carmen Galve Górriz

Carmen Galve Górriz

University of Zaragoza - Department of Economy and Business Management, Faculty of Economic Sciences and Business Studies

Vincente Salas Fumás

University of Zaragoza - Department of Economy and Business Management, Faculty of Economic Sciences and Business Studies

Date Written: February 2005

Abstract

This paper investigates differences in behaviour and performance of listed Spanish family and non family firms. We find that family firms grow at a smaller rate, choose less capital intensive productive technologies and are more efficient in production than non family firms. However the economic profits, financial structure and cost of capital is the same in family and in non family firms. This evidence, in sharp contrast with other found in samples of listed US firms where family firms outperform in profits to non family ones, is interpreted in the context of institutional differences between the two countries, in particular higher technological capital and better protection of minority shareholders in US than in Spain.

Keywords: Family Ownership, Firm Performance, Corporate Governance

JEL Classification: G3, G32

Suggested Citation

Galve Górriz, Carmen and Salas Fumás, Vincente, Family Ownership and Performance: The Net Effect of Productive Efficiency and Growth Constraints (February 2005). Available at SSRN: https://ssrn.com/abstract=664538 or http://dx.doi.org/10.2139/ssrn.664538

Carmen Galve Górriz (Contact Author)

University of Zaragoza - Department of Economy and Business Management, Faculty of Economic Sciences and Business Studies ( email )

Gran Via, 2
50005 Zaragoza, Zaragoza 50005
Spain

Vincente Salas Fumás

University of Zaragoza - Department of Economy and Business Management, Faculty of Economic Sciences and Business Studies ( email )

Gran Via, 2
50005 Zaragoza, Zaragoza 50005
Spain

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