The Life Cycle of Family Ownership: International Evidence

Mayer, Colin, Franks, Julian, Volpin, Paolo and Wagner, Hannes (2012) The Life Cycle of Family Ownership: International Evidence. The Review of Financial Studies, 25 (6). pp. 1675-1712.


We show that in countries with strong investor protection, developed financial markets, and active markets for corporate control, family firms evolve into widely held companies as they age. In countries with weak investor protection, less developed financial markets, and inactive markets for corporate control, family control is very persistent over time. While family control in high investor protection countries is concentrated in industries that have low investment opportunities and low merger and acquisition (M&A) activity, the same is not so in countries that have low investor protection, where the presence of family control in an industry is unrelated to investment opportunities and M&A activity.

Item Type: Article
Keywords: Ownership; Family firms; Life cycle; Corporate performance; finance
Subject(s): Finance
Date Deposited: 24 Apr 2012 14:52
Last Modified: 27 Feb 2017 15:17
Funders: N/A

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