Ownership, Productivity and Firms´ Life-Cycle

Keywords: Family firm, Productivity, Life-cicle, Endogeneity, Cobb-Douglas production function


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 firm´s 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.

How to Cite
Galego, A., Mira, N., & Silva, J. V. (2019). Ownership, Productivity and Firms´ Life-Cycle. European Journal of Family Business, 8(2), 139-150. https://doi.org/10.24310/ejfbejfb.v8i2.5228
Research Paper (SI)