The outperformance of family firms: the role of variance in earnings per share and analyst forecast dispersion on the Swiss market |
| |
Authors: | Thomas Zellweger Roger Meister Urs Fueglistaller |
| |
Institution: | (1) Center for Family Business University of St. Gallen, CFB-HSG, Dufourstrasse 40a, 9000 St. Gallen, Switzerland |
| |
Abstract: | Recent studies provide empirical evidence that family firms are outperforming their non-family counterparts in terms of stock
market performance. For the Swiss stock market we find that family firms indeed outperform their non-family counterparts after
controlling for firm size and beta. In addition, our data shows that family firms display more stable earnings per share in
contrast to their non-family counterparts. Furthermore we find that the variance of earnings per share positively affects
analyst forecast dispersion. According to anomaly literature, lower analyst forecast dispersion has been found to induce higher
excess return, which our data supports for the Swiss stock market. By linking variance of earnings per share, analyst forecast
dispersion and stock performance we provide an insightful explanation for the excess stock market returns of family firms.
In addition, our text extends the theory of dispersion effect with an additional empirical element, the variance of earnings
per share.
|
| |
Keywords: | Family firms Analyst forecast Dispersion Earnings per share |
本文献已被 SpringerLink 等数据库收录! |
|