High-Growth Firms and Family Ownership

Journal of Small Business and Entrepreneurship, 2013, 26(4): 365-385

Posted: 30 Sep 2013 Last revised: 10 Apr 2021

See all articles by Carl Magnus Bjuggren

Carl Magnus Bjuggren

Research Institute of Industrial Economics (IFN)

Sven-Olov Daunfeldt

University of Umea - Department of Economics

Dan Johansson

Örebro University School of Business

Abstract

Empirical studies demonstrate that most net job-growth originates from a small number of high-growth firms (HGFs). The purpose of this paper is to analyze whether family ownership matters for being an HGF, using data on all private firms in Sweden during 1993–2006. Our study is possible due to a tax reform that required tax authorities to identify family relations among ultimate owners of every Swedish firm. We find that family ownership at first sight decreases the probability of exhibiting high growth, but further analysis indicates a more complex relationship. The negative effect of family ownership seems to be driven primarily by small firms, and sometimes even becomes positive when firm growth is analyzed over longer time periods. In addition, the negative effect of family ownership is no longer present when we analyze firms that transferred ownership and control for unobserved time-invariant firm-specific heterogeneity.

Keywords: high-growth firms, gazelles, firm growth, firm ownership, family firms

Suggested Citation

Bjuggren, Carl Magnus and Daunfeldt, Sven-Olov and Johansson, Dan, High-Growth Firms and Family Ownership. Journal of Small Business and Entrepreneurship, 2013, 26(4): 365-385, Available at SSRN: https://ssrn.com/abstract=2333591

Carl Magnus Bjuggren

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Sven-Olov Daunfeldt

University of Umea - Department of Economics ( email )

Umeå University
Umea, SE - 90187
Sweden
+46-90-786 99 92 (Phone)
+46-90-772 302 (Fax)

Dan Johansson (Contact Author)

Örebro University School of Business ( email )

School of Business
Örebro, SE-70182
Sweden

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