Impact of family ownership concentration on a firm's performance: evidence from KSE-30 Index

The purpose of the study is to examine the relationship between family ownership concentration and firm performance in context of Pakistan so as to examine the structure of firms listed at KSE-30 Index with a sample of 20 non-financial firms for the duration of 4 years from 2009–2012. The independent variable is family ownership concentration & dependent variable is firm performance. After the Hausman Test Fixed and Random Effect Regression Model is applies on the panel data. The empirical results reveal a significant and positive relationship between dependent and independent variables. It means high concentration leads to better performance. The empirical results also expose a positive relation between Net Income and Size of the firm which indicates that family firms have good reputation and expend the business by retained earnings rather to distribute them. But these firms do not protect the minorities and other stakeholders.