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Ownership, productivity and firmsī life-cycle

Galego, A., N. Mira, J. Silva (2018), "Ownership, productivity and firmsī life-cycle", European Journal of Family Business, 8(2), 139-150.

Empirical evidence on productivity differences between family owned and non-family owned firms is still sparse and reveals conflicting results. Unlike previous studies, we analyse the effect firmīs life cycle on productivity using a large sample of non-listed firms. Furthermore, we consider a model with heterogeneity of inputs between the two types of firms and addressing possible endogeneity problems. We conclude that there are no significant differences in productivity between family and non-family firms, for both startup/growth and mature stages of life cycle. Furthermore, labour seems to be the main determinant of family firms’ productivity, which is especially evident for firms in the mature stage.