Authors: George Venetis, George Artikis, Panagiotis Artikis

Title: Comparative analysis of the Financial Characteristics of Family & Non-Family Businesses listed in the Athens Stock Exchange

Abstract

The main objective of the present paper is to examine the relationship between family control and firm performance, approximated by seventeen financial ratios, in Greek listed companies. Data on 200 Greek public companies observed over the years 2008 and 2011, are used. Prior studies clearly indicate that differences between family businesses and nonfamily businesses may exist because of their corporate environment. Thus, the present study contributes to the literature, since the objective is tested in a different market environment as Greece has differentiating characteristics in terms of institutional, economic, and legal environment from other developed countries of the Eurozone. Furthermore, Greece, during the time period of the research was in the the middle of a debt crisis cyclone that threatened the European solidarity, the euro-monetary unity, the stability of the foreign exchange rate of the euro and last but not least the cleavage of the global economy, attracting international investors’ attention and fear. The results indicate that during the period that the country faced a major financial and political crisis, family businesses performed in a similar way with the non-family, which have a dispersed ownership structure, with a professional manager in control.