We investigate whether better corporate governance impacts the performance of family versus non-family firms during the Global Financial Crisis (GFC). If good governance matters then its impact should be amplified during times of exogenous financial shocks.Furthermore the impact of governance will be more pronounced for family firms as family firms are more resilient, have greater access to survival capital and have a longer term decision making focus. We find that family firms have better governance but family firms have a lower earnings weight in valuation models. However we do find that better governance increased the variability in value however family firms lowered the impact of earnings on variability in value during the GFC.
|Title of host publication||Proceedings of Family Business Australia 2011 Research & Education Symposium|
|Editors||D. Casparsz, J. Thomas|
|Place of Publication||Sydney|
|Publisher||Family Business Australia|
|Publication status||Published - 2011|
|Event||FBA Family Business Research & Education Symposium - Hyatt Hotel, Perth, WA, Australia|
Duration: 31 Aug 2011 → 31 Aug 2011
|Conference||FBA Family Business Research & Education Symposium|
|Period||31/08/11 → 31/08/11|
Aldamen, H., Duncan, K., Kelly, S., & McNamara, R. (2011). Performance of family firms during the global financial crisis: Does governance matter? In D. Casparsz, & J. Thomas (Eds.), Proceedings of Family Business Australia 2011 Research & Education Symposium (pp. 1-17). Sydney: Family Business Australia.