Year of Graduation
Family Control Impact on Performance of Russian Companies
This paper investigates whether family involvement has an influence on the firm performance of Russian listed firms over the period 2011 – 2017. A regression model with fixed effects of year and industry evaluates the impact of family control on market and accounting efficiency (Tobin’s Q and ROA), controlling for specific company characteristics. Previous researches display ambiguous findings of family involvement effect. Moreover, due to difficulties in obtaining data, there is a dearth of similar empirical studies in Russia. We conclude that overall family impact does not influence the performance, but in young companies there is a positive effect of family ownership. Furthermore, family CEO significantly improves the performance, while the descendant’s control enhances accounting efficiency. The only negative family effect on market performance is presented by family Chairman, but independent directors may help to reduce the negative influence. So it is recommended to keep families involved in business and an active CEO position is especially important for outperformance.