Impact of Family Ownership on Market Value of a Firm: A Comparative Analysis of Family and Non-Family Companies Listed at Karachi Stock Exchange (Pakistan)

Authors

  • Safdar Husain Tahir Assistant Professor Banking & Finance, Government College University Faisalabad, Pakistan
  • Hazoor Muhammad Sabir Professor Management & Admin Sciences, Government College University Faisalabad, Pakistan

DOI:

https://doi.org/10.18488/journal.11/2014.3.12/11.12.673.683

Abstract

The current study attempts to investigate the impact of family ownership structure on value of firms listed at the Karachi Stock Exchange (KSE) of Pakistan. For the distinction of FOB from Non-FOB, two threshold points (25% & 50%) of ownership structure are used. A sample of 280 listed firms at KSE is collected ranging for the period 2002-13. Generalized Method of Moments (GMM) is applied on panel data to estimate the coefficients of variables. The empirical results indicate that the family firms outperform the non-family ones. The better performance of young generation of family firms over succeeding generation is also revealed but professional chief executive officer (CEO) over family member is preferred. Furthermore, this study discovers inflection points i.e. (62% & 57%) for family and non-family firms under quadratic specification respectively.

Keywords:

Family business, Firm’s value, GMM, Karachi stock exchange (KSE), Ownership concentration, Panel data

Downloads

Download data is not yet available.

Published

2015-03-16

How to Cite

Tahir, S. H. ., & Sabir, H. M. . (2015). Impact of Family Ownership on Market Value of a Firm: A Comparative Analysis of Family and Non-Family Companies Listed at Karachi Stock Exchange (Pakistan). International Journal of Management and Sustainability, 3(12), 673–683. https://doi.org/10.18488/journal.11/2014.3.12/11.12.673.683

Issue

Vol. 3 No. 12 (2014)

Section

Articles