Pajarinen, Mika Rouvinen, Petri Ylä-Anttila, Pekka
Year of Publication:
ETLA discussion paper 1242
The study investigates empirically how ownership affects firms' domestic employment and its fluctuations. We look at six different ownership categories: first generation family businesses, second generation (or older) family businesses, state-owned companies, foreign-owned companies, publicly listed companies, and others (e.g. co-operatives and non-listed, non-family companies). It turns out that ownership matters. Volatility of employment in listed companies is much higher than in other firms. State-owned companies show the highest stability in employment, and they have also reduced their personnel less than others during the economic crisis of 2008-2009. The group of 'second generation family businesses' shows higher stability of employment than 'first generation'. Family businesses (especially the second or subsequent generation enterprises) are typically not high-growth firms. They seem to prefer stability over swift growth.
ownership structure family business business objectives employment growth