Family business and firm performance: evidence from the Mexican Stock Exchange

Abstract

This study aims to examine whether there are differences in the performance of family and non–family firms after taking into account the peculiarities of the Mexican corporate system, based on the study of Anderson and Reeb (2003). We propose an analysis that allows us to conduct comprehensive study and comparison between companies with different ownership structures (family vs. non–family firms), distinguished by developed patterns of governance with heterogeneous characteristics. We also analyse the effects on performance depending on the degree of ownership concentration. Moreover, we find evidence of a different relationship between governance mechanisms and performance depending on the type of company being family or non–family. Our results are consistent with Anderson and Reeb (2003).