This research investigates the significant influence of family ownership on firm performance in order to provide information to the investors, decision makers and other interested parties. The analysis includes comparisons between family and non-family firm performance in Indonesia.
The samples are taken from cross section data of 134 manufacturing companies, consisting 74 family firms and 60 non-family firms that listed in the Indonesian Stock Exchange in 2014. This research also uses multiple regression model to learn more about the relationship between several independent or predictor variables and a dependent or criterion variables, and applies the quadratic equation.
The results show that non-family firms perform better than family firms. The interesting result of this research is that the family ownership influences positively to the firm performances (ROA and Tobin’s Q) in family firm and the square of family ownership is negative to firm performance (ROA and Tobin’s Q), however it is not significant. This means that a non-linear relationship does not exist between family ownership and firm performance.

This research investigates the significant influence of family ownership on firm performance in order to provide information to the investors, decision makers and other interested parties. The analysis includes comparisons between family and non-family firm performance in Indonesia.
The samples are taken from cross section data of 134 manufacturing companies, consisting 74 family firms and 60 non-family firms that listed in the Indonesian Stock Exchange in 2014. This research also uses multiple regression model to learn more about the relationship between several independent or predictor variables and a dependent or criterion variables, and applies the quadratic equation.
The results show that non-family firms perform better than family firms. The interesting result of this research is that the family ownership influences positively to the firm performances (ROA and Tobin’s Q) in family firm and the square of family ownership is negative to firm performance (ROA and Tobin’s Q), however it is not significant. This means that a non-linear relationship does not exist between family ownership and firm performance.

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