The impact of family ownership on firm performance: A study on Vietnam

Figures & data

Table 1. Definition of variables

Items	Expected sign	Measurement
Firm performance (Perf)		From an accounting standpoint:$ROA\left(EBITDA\right)=\frac{Earningbeforeinterest,taxes,depreciation\mathrm{\&}amortization}{Totalassets}$
		$ROA\left(NI\right)=\frac{NetIncome}{Totalassets}$
		From a market standpoint:$Tobin{ }^{\mathrm{\prime }}sQ=\frac{Marketvalueoftheenterprise}{Bookvalueoftotalassets}$
Family ownership ratio (Own)	(+)	Percentage of total family ownership in the enterprise
Family ownership ratio squared (Own)2	(-)	Percentage of total family ownership in the enterprise squared
Enterprise size (Size)	(+)	Ln (Book value of total assets)
Long-term debt ratio (Longdebt)	(-)	$\frac{Long-termdebt}{Totalassets}$
Cash dividend payout ratio (DIV)	(+)	Percentage of cash dividend payment
Institutional ownership ratio (InstOwn)	(+)	Percentage of institutional ownership
Intangible fixed assets to total assets ratio (Intang)	(-)	$\frac{Intangiblefixedassets}{Totalassets}$

Table 2. Descriptive statistics

Items	N	Mean	Standard Deviation	Min	Max
Own	279	0.3508	0.1898	0.0878	0.8103
Tobin’sQ	279	1.9630	2.0693	0.1520	13.15
ROA(EBITDA)	279	0.0948	0.1019	−0.1052	0.9393
ROA(NI)	279	0.0555	0.0729	−0.1188	0.7219
Longdebt	279	0.1466	0.1420	0	0.6282
Intang	279	0.0180	0.0259	0	0.1943
InstOwn	279	23.78	20.23	0.0180	81.06
DIV	279	0.0828	0.1594	0	2.14
Size	279	28.6109	1.4543	26.0523	33.6318

Table 3. The results of regression analysis with the PCSE method

Items	Tobin’s Q	ROA(EBITDA)	ROA(NI)
(Constant)	−14.2454***	0.0045	−0.0030
Own	−4.9853***	−0.1773**	−0.0645
Own2	5.8590***	0.2457**	0.1088
Longdebt	−1.3138*	−0.1381***	−0.1126***
DIV	0.2570	0.3671***	0.2942***
Instown	0.0145**	0.0003	0.0000
Size	0.5843***	0.0032	0.0019
Intang	0.7880	−0.1806	−0.1590
Adjusted R squared	32.9%	64.82%	64.2%

Note: *** p < 0.01, ** 0.05, * 0.1

Table 4. Results of the effect of family ownership ratio on firm performance with the PCSE method

Items	Tobin’s Q	ROA(EBITDA)	ROA(NI)
(Constant)	−14.2454***	0.0045	0.0135***
Own	−4.9853***	−0.1773**	0.0255*
Own^2	5.8590***	0.2457**
Longdebt	−1.3138*	−0.1381***	−0.1161
DIV	0.2570	0.3671***	0.2948***
InstOwn	0.0145**	0.0003	0.0000
Size	0.5843***	0.0032	0.0009
Intang	0.7880	−0.1806	−0.1314
Adjusted R squared	32.9%	64.82%	63.65%

*** p < 0.01, ** 0.05, * 0.1.