A study of listed firms in Italy found that family firms fared significantly better than other firms during the COVID-19 pandemic. They experienced both higher daily stock returns and operating profitability, especially in the absence of relevant minority investors and with multiple family shareholders in the firm’s equity, says the study, which is in the February 2022 issue of the Journal of Banking and Finance.
Outperforming their nonfamily counterparts was especially true in labor-intensive industries, as family firms exhibited a higher labor productivity and were better able to generate revenues out of their asset base. The study is “Family Ownership During the COVID-19 Pandemic,”
and the authors are Mario Daniele Amore, Valerio Pelucco,
and Fabio Quarato.
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