Does "Family" Matter to Corporate Performance?

McFarlin, Dean B.
May 2008
Academy of Management Perspectives;May2008, Vol. 22 Issue 2, p100
Academic Journal
The article discusses research into how family ownership of a company affects the company's performance. The author comments on a study led by researcher Danny Miller in which family business enterprises were redefined to include multiple family members. The study suggested that companies founded by a single individual displayed increased revenue growth, research and development (R&D) investment and better overall performance compared to firms that included multiple family members. The measurement ratio Tobin's Q was used to evaluate business enterprises and debt/equity ratios, company age and industry categories served as control variables. The author comments that the study indicates how previous research into family businesses overlooked important conclusions.


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