DO FAMILY FIRMS IN TAIWAN CREATE VALUE AFTER ENDOGENEITY IS CONTROLLED?

Chih-yi Chi ； Di-Chien Lo ； Shih-Ti Yu

《Advances in Financial Planning and Forecasting》 9期 (2018/12) Pp. 53-78

https://doi.org/10.6291/AFPF.201812_9.0003

摘要

Whether family firms create value is not conclusive, and most models treat a firm's type as exogenous. We find that whether a firm is family or non-family should be modeled as endogenous by using Hausman test and Heckman's (1979) two-step method. After controlling for the endogeneity, we find that family firms in Taiwan create value. Furthermore, we observe some firms switched their types from family to non-family or the other way around. We find that the switch should also be considered as endogenous, and the switches create value.

關鍵字

Family Firms ； Endogeneity ； Heckman's Two-Step

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