Resource title

The Performance of family-owned firms in the French stock market 1993-2002

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In this study the authors track the stock market performance over a 9-year period of equities listed in December 1993 in the primary French stock exchange, the SBF250. They analyze the total shareholder return of two portfolios, family-owned firms and non-family firms, using four different methodologies: buy and hold, annual buy and sell, time series regression of excess return and cross sectional analysis. They find strong statistical evidence that family-owned firms outperform non-family firms over this time period. Furthermore, their results appear to indicate that the family firm portfolio's superior performance is not due to differences in the industrial classification, the market value or the book-to-market value of the companies that form each portfolio. They also find that the superior performance over this period is obtained during years of relatively poor stock market performance and in the first year that the market turns around.

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en

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application/pdf

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http://flora.insead.edu/fichiersti_wp/inseadwp2004/2004-37.pdf

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