Financial Decision Making in Family Firms

Student: Loktaev Ivan

Faculty: International College of Economics and Finance

Educational Programme: Double degree programme in Economics of the NRU HSE and the University of London (Bachelor)

Year of Graduation: 2019

This paper tries to find a connection between the family ownership and company’s performance. Currently, empirical evidence both from Western economies and Asia does not give conclusive results. To test the connection, we applied panel data framework with sampling period of 8 years (2010-2018) and included 181 firms also testing for effects of government and institutional ownership on the firm performance while controlling for leverage, size, age and other firm characteristics. Finding reveal that the family firms are significantly better performers as measured by both accounting (ROA) and market (Tobin’s Q) measure and this result are robust with varying methodologies (Pooled and Random Effects panel). In the same time, effects of both state and institutional ownership are highly sensitive to the methodology, dependent variable and measure of family ownership employed.

Student Theses at HSE must be completed in accordance with the University Rules and regulations specified by each educational programme.

Summaries of all theses must be published and made freely available on the HSE website.

The full text of a thesis can be published in open access on the HSE website only if the authoring student (copyright holder) agrees, or, if the thesis was written by a team of students, if all the co-authors (copyright holders) agree. After a thesis is published on the HSE website, it obtains the status of an online publication.

Student theses are objects of copyright and their use is subject to limitations in accordance with the Russian Federation’s law on intellectual property.

In the event that a thesis is quoted or otherwise used, reference to the author’s name and the source of quotation is required.

Search all student theses