Kauppatieteellinen tiedekunta, 2014
Laskentatoimi ja rahoitus
Master's Degree Programme in Finance
The purpose of the study is to investigate whether family firms are higher market performers than non-family companies. Furthermore, the study examines if the blocksize of the owners have an effect on company performance.
In addition, the study introduces the most common performance indicators, and typical aspects of centered ownership structure like agency problem and company size effect. The negative and positive sides of family firms are introduced as well.
The data set consists of the companies that were listed on Helsinki stock exchange during the sample period of 2002-2012. However, the thesis excludes the financial sector due to the government regulations. These companies are divided into two groups depending on their ownership structure. The market performance differences between family firms and non-family firms is measured by using multivariate regression models in which Tobin's Q and return on assets are the dependent variables.
The main result of the study show that family firms are weaker market performers than non-family firms in the Finnish stock markets. However, while focusing on family firms, the results show that they may benefit if the main owners increase their blocksize.
Family firm, ownership structure, firm performance, Tobin's q, Return on assets