Corporate governance and its impact on financial performance on public family-owned firms: the contribution of Tobin’s q

Abstract

Corporate Governance strongly contributes to the efficient functioning of the market and corporations, not only by providing the right governance architecture, but also by aligning goals and interests between shareholders and management. Family businesses have been present throughout all of economic history. This work project will be focused on the relationship between family-ownership, firm value, and performance. This is measured separately by using Tobin’s Q and Market Capitalization. The sample will be limited to the European Market, more precisely, the Portuguese and Danish Markets, for which we observe a negative effect of family-ownership on firm value in all models.