Eugster, Nicolas Isakov, Dušan 2018-10-01 This paper explores the relationship between founding family ownership and stock market returns. Using the entire population of non-financial firms listed on the Swiss stock market for 2003–2013, we find that the stock returns of family firms are significantly higher than those of non-family firms after adjusting the returns for different firm characteristics and risk factors. Family firms generate an annual abnormal return of 2.8% to 7.1%. Moreover, family firms potentially having more agency problems earn higher abnormal returns. Although they are more profitable, family firms have lower valuations and regularly surprise markets by announcing better-than-expected earnings. The evidence suggests that outside investors earn a premium for being exposed to the specific agency problems present in family firms. application/pdf https://folia.unifr.ch/global/documents/307007 https://folia.unifr.ch/documents/307007/files/WP_SES_490_revised.pdf eng http://www.unifr.ch/ses/wp info:eu-repo/semantics/openAccess License undefined Entreprises familiales Dividendes Actionnariat Actionnaires Actionnaires minoritaires Agence, Théorie de l' Marché financier 2003-2013 Suisse family firm ownership structure abnormal returns performance earnings surprise info:eu-repo/classification/udc/33 Founding family ownership, stock market returns, and agency problems http://purl.org/coar/resource_type/c_18ws