The impact of family control on firm's return

• Autor(es): Marcelo, José Luis Miralles ; Quirós, Maria del Mar Miralles ; Lisboa, Inês
• Data: 2011
• Identificador Persistente: http://hdl.handle.net/10400.21/1428
• Origem: Repositório Científico do Instituto Politécnico de Lisboa
• Assunto(s): Family Firms; CEOs identity; Stocks Return; Asset Pricing Models
• Tipo de Documento: Documento de conferência
• Idioma: Inglês

Descrição

Family firm is a field of growing interest. The aim of this article is to understand whether CEOs identity impacts family firm’s stock returns. From a sample of Portuguese and Spanish family firms findings show that who manages the firms result in significantly different risk exposure. Moreover, we find that the abnormal return found by Fahlenbrach (2009) to founder-controlled firms disappear when we use valueweighted portfolios and include two new factors: market aggregate illiquidity and debt intensity to the four-factor Carhart model. Finally, our results explain why the majority of family firm is controlled by its founder.