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The Impact of Vote Differentiation on Investment Performance in Listed Family Firms

PublicationArticle (with peer review)
Bolagsstyrning, Familjeföretag, Företagandets villkor, Investering, Johanna Palmberg, Per-Olof Bjuggren

Abstract

This article investigates the effects of separation of ownership and control because of vote differentiation on listed family firms’ investment performance. The authors study the question of whether family-controlled firms have better investment performance than nonfamily firms and whether this investment performance is negatively affected by a separation of ownership and control because of vote differentiation. Marginal q is used as a performance measure. The empirical analysis shows that family control has a positive impact on investment performance when ownership and control are aligned, whereas separation of ownership and control in terms of vote-differentiated shares reduce investment performance.

Bjuggren, P-O. & Palmberg, J. (2010). ”The Impact of Vote Differentiation on Investment Performance in Listed Family Firms”. Family Business Review, 23(4): 327-340.

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The Impact of Vote Differentiation on Investment Performance in Listed Family Firms
Artikel (med peer review)Publication
Bjuggren, P-O. & Palmberg, J.
Publication year

2010

Abstract

This article investigates the effects of separation of ownership and control because of vote differentiation on listed family firms’ investment performance. The authors study the question of whether family-controlled firms have better investment performance than nonfamily firms and whether this investment performance is negatively affected by a separation of ownership and control because of vote differentiation. Marginal q is used as a performance measure. The empirical analysis shows that family control has a positive impact on investment performance when ownership and control are aligned, whereas separation of ownership and control in terms of vote-differentiated shares reduce investment performance.

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