Family Owned Business Institute

Research Scholar's Abstracts 2005 - Henrik Cronqvist, Mattias Nilsson

Family Ownership and Worker Compensation
Henrik Cronqvist, Mattias Nilsson
2004
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The primary focus of this research is to determine if family owned firms pay levels of compensation that are greater than, less than, or equal to those companies that are widely held? Some theories suggest that family-controlled firms pay higher wages, while others suggest that they pay lower wages. To the record, this survey will be a pioneer in evaluation of claims involved.

The result will make significant contribution to research in both financial and labor economics. Financial economists may find interest in the relationship between family ownership and decisions by companies. This may provide insight to whether family ownership results in higher or lower wages. Labor economists may find this research significant due to their examination on the effect of firm characteristics, e.g. firm size, on worker compensation, but not the effects of family ownership and corporate control.