Ownership structure and operating performance: family and non-family firms in Australia

This study empirically investigates the operating performance of listed firms on the ASX during the period 1998-2010. The paper introduces a fixed effect model to examine the operating performance and compare differences between family and non-family companies. The results reveal that 22.45% of listed companies are family owned businesses. On average, family shareholders retain a higher level of fractional equity capital than non-family investors. On average, family firms are older and have a higher survival rate than non-family firms. The results also show that Australian listed firms under analysis have experienced poorer operating performance. It seems that family firms experience a smaller decline in their returns in comparison with their counterparts