Does family control reduce firm risk?

Miralles-Marcelo, Jose Luis ^[1] ; Miralles-Quirós, María del Mar ^[1] ; Lisboa, Ines ^[2]
1. [1] Universidad de Extremadura
  
  Universidad de Extremadura
  
  Badajoz, España
2. [2] Instituto Politécnico de Leiria
  
  Instituto Politécnico de Leiria
  
  Leiria, Portugal
Localización: Revista de Empresa Familiar, ISSN-e 2174-2529, Vol. 5, Nº. 1, 2015, págs. 17-25
Idioma: inglés
Enlaces
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Resumen
- In the current context of instability and financial crisis, understanding firm risk is crucial. In this study we aim to assess firm risk differences between family and non-family firms. Furthermore we analyze the family control impact, measured by both the family ownership and the F-PEC scale, in firm risk. We provide new evidence from family firm studies since we not only analyze the risk topic, almost unexplored, but we also introduce the F-PEC scale, an alternative way to measure the family influence. Using Portuguese quoted firms during the 1999- 2012 period, we find that family influence and control do not impact firm risk. Moreover, the firm size, return and growth opportunities influence it.