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http://hdl.handle.net/10419/53821
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| Title: | | Family values: Ownership structure, performance and capital structure of Canadian firms  |
| Authors: | | King, Michael R. Santor, Eric |
| Issue Date: | | 2007 |
| Series/Report no.: | | Bank of Canada Working Paper 2007,40 |
| Abstract: | | This study examines how family ownership affects the performance and capital structure of 613 Canadian firms using a panel dataset from 1998 to 2005. In particular, we distinguish the effect of family ownership from the use of control-enhancing mechanisms. We find that freestanding family-owned firms with a single share class have similar market performance than other firms based on Tobin's q ratios, superior accounting performance based on ROA, and higher financial leverage based on debt-to-total assets. By contrast, family-owned firms that use dual-class shares have valuations that are lower by 17% on average relative to widely-held firms, despite having similar ROA and financial leverage. Finally, concentrated ownership by either a corporation or a financial institution does not significantly affect firm performance. |
| Subjects: | | Financial markets International topics |
| JEL: | | G12 G15 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Bank of Canada Working Papers
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