DOES OWNERSHIP MATTER? A STUDY OF FAMILY AND NON FAMILY FIRMS IN PAKISTAN
Journal Title: Problems of Management in the 21st Century - Year 2011, Vol 2, Issue 12
Abstract
Researchers have been trying to find out whether ownership makes any difference to a firm’s performance. The purpose of this article is to analyse whether family or non-family firms perform better. It focuses on comparison only and does not indulge in finding out reasons of the results. A sample of 100 randomly selected firms from firms from �arachi Stock ��change ��S��, Pakistan were e Pakistan were e�amined for si� years for si� years �200�-200��. Ownership variable is taken as a dummy variable besides two other independent variables: age and size. Return on Asset �ROA�, Return on �quity �RO�� and Tobin’s Q are used to measure firm performance. Fi�ed �ffect Model along with statistical analysis were used to e�amine the effects of the variables. The statistical analysis showed that non-family firms had greater mean values for performance variables. Correlation matri� showed that the size of a firm will be small in case a family is running it. The correlation coefficient between family ownership and age is also negative. Family ownership had a negative β in every regression. Log of asset and log of age had positive βs in every model. The results thus obtained from empirical data of firms listed on �S� clearly reflect that non-family firms outperform family firms with every performance variable included in the study. This can serve as a guideline in determinig ownership structure for firms in Pakistan.
Authors and Affiliations
Muhammad Nauman Khan, Fawad Khan
Keywords
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