Author(s): Salakbun Wongakaradeth, Sakkakom Maneenop
We examine the roles of CEO and family ownerships in firm performance using data from listed companies in Thailand. We find that family firms whose CEO holds the significant level of shares deliver the higher stock returns and accounting performance than the other firms. Our results suggest that, in markets with weak legal protection for investors, investors can gain abnormal returns by investing in firms with this specific ownership structure. This type of firm can reduce the agency problems type I (conflict between manager and shareholders) and type II (conflict between majority and minority shareholders), whereas other firms may be able to mitigate only type I problems.