Family Ownership and firm performance: Evidence From Public Companies in Chile and Perú
Claudio A. Bonilla and Claudio Müller, School of Economics and Business. University of Chile, Santiago de Chile
Varios authors have maintained that family firms are more profitable than nonfamily ones, basing their assertion on certain advantage such as the lower agency cost of dealings between family members and a longer-term management perspective. Others, however, take the opposite view. arguing that family businesses have significant disadvantages stemming from their limited capacity to hire external managers for key executive positions and the ever-present possibility they may expropriate value from minority stakeholder. Either of these phenomena could presumably damage market confidence un family companies and negatively affect they share prices.