Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
© 2015 Pitra C. Harun
In my study, I examine the relationship between founding family ownership and firm performance. Using publicly listed companies in Indonesia, I observe families are much more prevalent than in the US; in my sample, families are present in over 60% of Indonesian listed companies and families own an average outstanding equity of 50.4%. Contrary to previous literatures, I present new evidence to show founding family ownership and control is a more efficient form of ownership structure only when the family is a majority-shareholder in the company. Additional investigations shows that founding family ownership has a U-shaped quadratic relationship with firm performance, indicating that an increase in family ownership is initially associated with worsening firm performances, but is then associated with improving firm performances after passing a certain level of equity ownership.
Harun, Pitra C., "Founding-Family Ownership and Firm Performance: Evidence From Indonesia" (2015). CMC Senior Theses. 1108.
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