The relationship between family-ownership and firm performance

This research discusses the relationship between family-firms and firm performance. 200 European firms are used in the sample. European firms are selected since prior family-business literature is mostly focused on firm outside of Europe. The goal of this study is to examine whether family-ownership has an influence on firm performance. Firm performance will be measured via Tobin’s Q and Return on Assets (ROA). The regression results show a statistical relationship for both dependent variables. The results of this research therefore indicate that family-ownership is positively related to firm performance.