Abstract
This research investigates the significant influence of family ownership on the firm performance in order to provide information to decision maker and other interested parties. The analysis includes comparison between family and non-family firm performance in Indonesia. The samples are taken from 31 consumer goods companies, listed in Indonesian Stock Exchange, ranging from 2005 to 2009. The result describes that non-family firms perform better than family firms and no significant influence between family ownership and firm’s profitability. On the other hand, family ownership has negative contribution to firm market valuation. The study suggests that family firms have less financial performance than that of non-family. Family member within the top position and have major control rights contribute negative influence to firm performance. The evidence raises concerns about possible profit manipulation and weak governance law in Indonesia, and as a result there is an expropriation of wealth to the majority and family related shareholders.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
