Resumen de Financial and non-financial risk: Family firms and nonfamily firms
Family firms (FF) tend to be classified as less risky and volatile than non-family firms (NFF). This article aims to examine whether there are differences in risk and volatility between FF and NFF, using a sample of 33 Portuguese listed firms during 2008 and 2016. The fundamental goal of this work is to determine the effect of family control over volatility and risk attending to the effects of investment, of indebtedness and of the firm and financial market characteristics of FF as compared to NFF. For that we have formulated hypothesis which have been tested using panel data estimation and it was possible to take from the analysis important results. Estimations have been made for the total number of companies in the sample, considering different model and variables specifications, measures of financial and accounting performance, different measures of risk and for the two subsamples, considering 22 FF and the 11 NFF for which it was possible to divide the sample. Results seem to indicate that investors consider in their decisions the non-financial risk associated to FF, but that in the case of NFF the most relevant kind of risk is the financial risk, a result that remained consistent even under different estimation specifications. As such, considering the risk into the analysis is very important when we try to understand the relationship between risk and return among FF and NFF.
