On the Performance Gaps between Family and Non-Family Firms in the Czech Republic

• Published in: Central European business review Vol. 2; no. 4; pp. 54 - 55
• Main Authors: Hnilica, Jiří, Machek, Ondřej
• Format: Journal Article
• Language: English
• Published: Prague Vysoká škola ekonomická v Praze - Fakulta podnikohospodářská 01.01.2013; University of Economics, Prague - Faculty of Business Administration; University of Economics, Faculty of Business Administration
• Subjects: Economic value added; Economy; Family owned businesses; Financial performance; Return on assets; Studies; Czech Republic
• ISSN: 1805-4862; 1805-4854; 1805-4862
• DOI: 10.18267/j.cebr.65

Family firms are considered to be different from non-family firms because they are owned or managed by members of a family whose intention is to continue the business across generations. Family members are supposed to be altruistic toward each other, following moral obligations which are part of a normative order in most cultures around the world. Recently, we addressed the question of what is the current state-of-the-art in the research on the relation between family involvement and firms performance. We studied 78 past studies and using a meta-analysis method, we found evidence of a positive relationship between family involvement and businesses performance. We also examined the most frequently used measures of business performance. The most frequently used metric was return on assets (ROA), followed by Tobins q and sales growth.