Ownership Structure and Firm Performance in Sweden

Sammanfattning: The aim of this thesis is to investigate the relation between ownership structure and firm performance. The research is based on publicly traded firms listed on the Stockholm stock exchange OMX30, during the time period 2006-2011. Our study is based on panel data of 225 firms, with approximately 1 observation per year. Firstly, we measure the performance of family controlled and non-family controlled firms by using both Tobin’s Q and ROA as measurement for firm performance. Further, we estimate the possible impact a family member has on the firm performance when operating as either the CEO or Chairman of the board, in family controlled firms. Accordingly, we find that family-controlled firms perform worse, compared to firms that are not family-controlled. We also find a statistically significant negative relationship when a family member operates as the Chairman of the board.