A Meta-Analysis About the Financial Performance of Family Firms: Another Try

Purpose The purpose of this paper is to carry out a meta-regression analysis upon the literature that examines the relationship between family firms and financial performance. Design/Methodology/Approach Information of publication and study characteristics from 61 primary studies, comprising 726 size effects was collected. In particular, three leading factors highlighted in narrative literature reviews analyzed were: the financial performance measures, the family–firm definitions and the estimation methodologies. Findings Overall, a positive relationship between family involvement and financial performance was found. A series of results, those linked to return on assets (ROA) – earnings before interest, taxes, depreciation and amortization (EBITDA), suggest positive publication bias from family definition and negative publication bias when OLS is used. Tobin’s Q estimates show no linkage to certain traits and aspects of the research process. Originality/value Existing literature review and meta-analysis studies show not concluding results on the family effect upon firm performance. The meta-regression analysis used in this paper allows to examine simultaneously effect size and publication bias. The latter effect is particularly salient in the approach and findings, and not present in previous studies.

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Do Corporate Sustainability and Sustainable Finance Generate Better Financial Performance? A Review and Meta-analysis

SSRN Electronic Journal ◽

10.2139/ssrn.3708495 ◽

2020 ◽

Author(s):

Ulrich Atz ◽

Tracy Van Holt ◽

Zongyuan Zoe Liu

Keyword(s):

Financial Performance ◽

Meta Analysis ◽

Corporate Sustainability ◽

Sustainable Finance

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The Link Between SRI and Financial Performance: Effects and Moderators

Management international ◽

10.7202/1015403ar ◽

2013 ◽

Vol 17 (2) ◽

pp. 105-122 ◽

Cited By ~ 3

Author(s):

Christophe Revelli ◽

Jean-Laurent Viviani

Keyword(s):

Financial Performance ◽

Meta Analysis ◽

Socially Responsible Investment ◽

Empirical Literature ◽

Empirical Methods ◽

Socially Responsible ◽

Responsible Investment ◽

Counting Approach ◽

Performance Effects ◽

Vote Counting

Over the last twenty years, the debate on financial performance of socially responsible investment (SRI) has not yielded a clear consensus, arguing mainly that there was no difference in performance between SRI and ‘conventional’ investment, although SRI could underperform or outperform in some cases. Our research, based on a meta-analysis ‘vote-counting’ approach of the empirical literature, allows us to observe that the effects of SRI on financial performance are multiple. Second, we conclude that the financial performance of SRI is radically changing according to the empirical methods employed by researchers.

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Family firms and financial performance: The cost of growing

Emerging Markets Review ◽

10.1016/j.ememar.2012.09.003 ◽

2012 ◽

Vol 13 (4) ◽

pp. 626-649 ◽

Cited By ~ 45

Author(s):

Maximiliano González ◽

Alexander Guzmán ◽

Carlos Pombo ◽

María-Andrea Trujillo

Keyword(s):

Financial Performance ◽

Family Firms ◽

The Cost

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Good deal or bad deal? A meta-analysis of acquiring family firms and M&A performance

Academy of Management Proceedings ◽

10.5465/ambpp.2021.12435abstract ◽

2021 ◽

Vol 2021 (1) ◽

pp. 12435

Author(s):

Marina Palm ◽

Priscilla Sarai Kraft

Keyword(s):

Family Firms ◽

Meta Analysis ◽

Good Deal ◽

A Performance

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Global financial crisis, ownership structure and firm financial performance

Studies in Economics and Finance ◽

10.1108/sef-09-2016-0223 ◽

2017 ◽

Vol 34 (4) ◽

pp. 447-465 ◽

Cited By ~ 3

Author(s):

Ali Salman Saleh ◽

Enver Halili ◽

Rami Zeitun ◽

Ruhul Salim

Keyword(s):

Financial Crisis ◽

Financial Performance ◽

Ownership Structure ◽

Family Firms ◽

Global Financial Crisis ◽

Ownership Concentration ◽

Financial Leverage ◽

Content Type ◽

Crisis Period ◽

The Global Financial Crisis

Purpose This paper aims to investigate the financial performance of listed firms on the Australian Securities Exchange (ASX) over two sample periods (1998-2007 and 2008-2010) before and during the global financial crisis periods. Design/methodology/approach The generalized method of moments (GMM) has been used to examine the relationship between family ownership and a firm’s performance during the financial crisis period, reflecting on the higher risk exposure associated with capital markets. Findings Applying firm-based measures of financial performance (ROA and ROE), the empirical results show that family firms with ownership concentration performed better than nonfamily firms with dispersed ownership structures. The results also show that ownership concentration has a positive and significant impact on family- and nonfamily-owned firms during the crisis period. In addition, financial leverage had a positive and significant effect on the performance of Australian family-owned firms during both periods. However, if the impact of the crisis by sector is taking into account, the financial leverage only becomes significant for the nonmining family firms during the pre-crisis period. The results also reveal that family businesses are risk-averse business organizations. These findings are consistent with the underlying economic theories. Originality/value This paper contributes to the debate whether the ownership structure affects firms’ financial performance such as ROE and ROA during the global financial crisis by investigating family and nonfamily firms listed on the Australian capital market. It also identifies several influential drivers of financial performance in both normal and crisis periods. Given the paucity of studies in the area of family business, the empirical results of this research provide useful information for researchers, practitioners and investors, who are operating in capital markets for family and nonfamily businesses.

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