Valuable inputs and comments by Alberto Gimeno, Nicolás Majluf, Alfredo Enrione, León Cohen, Guillermo Tagle, Cristián Moreno, and José Manuel Silva are gratefully acknowledged. All errors remain our own. The financial support given by the Jorge Yarur B. Chair on Families in Business at ESE Graduate Business School, Universidad de los Andes, is also gratefully acknowledged.
Family Ownership and Firm Performance: Evidence From Public Companies in Chile
Article first published online: 26 JUN 2007
Family Business Review
Volume 20, Issue 2, pages 83–94, June 2007
How to Cite
Martínez, J. I., Stöhr, B. S. and Quiroga, B. F. (2007), Family Ownership and Firm Performance: Evidence From Public Companies in Chile. Family Business Review, 20: 83–94. doi: 10.1111/j.1741-6248.2007.00087.x
- Issue published online: 26 JUN 2007
- Article first published online: 26 JUN 2007
We studied the impact of family ownership on firm performance by using a set of data on Chilean firms. From a sample of 175 firms listed on the stock market, the group of 100 family-controlled firms performed significantly better than the group of 75 nonfamily companies over the 10-year period under study (1995–2004). Three distinct measures of performance—ROA, ROE, and a proxy of Tobin's Q—were employed to test the differences of means between the two groups of firms. These results were in line with our multiple regression model. All these findings support our conceptual framework and hypothesis, which states that public family firms perform better than public nonfamily firms.