Does Family Ownership Impact Firm Performance?- Evidence from India

Working Papers
Bang, Nupur Pavan.,Vishwanathan, Anierudh.,Ray, Sougata., Ramachandran, Kavil. "Does Family Ownership Impact Firm Performance?- Evidence from India "
Concentrated ownership of a firm in the hands of a family presents unique opportunities and challenges that may have an impact on the performance of the firm. A unique proprietary database of scientifically classified listed family and non-family firms covering 4,186 firms in India from 1990 to 2016 has been used to study the impact of family ownership on firm performance, thus advancing the debate that has so far been skewed towards studies from the developed markets and larger firms. Family ownership classification used in this considers ownership concentration in the hands of the family, the management control with the family and ownership continuity within the family. Accounting and market measures of firm performance have been used to conduct a time-series cross-sectional comparison of family and non-family firms. Results show that family ownership and control per se are a significant impediment to firm performance for the listed firms in India.