Family-Owned vs Non-Family Firms: Profitable Comparison (2025)

Sachi Rosado

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: BS.FINANCE

Faculty Research Mentor: Yu, Huaibing  

Abstract:

Title: Family-Owned vs Non-Family Firms: Profitability Comparison (2025)Abstract: Ownership is a key factor influencing corporate performance. Family-owned firms may prioritize long-term profitability and risk management differently than non-family firms. This study examines whether family-owned firms demonstrate higher profitability compared to non-family publicly traded firms in 2025.The sample includes family-owned firms such as Walmart (Walton Family), Ford Motor Company (Ford Family), and BMW (Quandt Family). Compared with non-family-owned firms including Target, General Motors, and Mercedes-Benz Group. Using sample of select publicly traded companies using metric including return of equity (ROE) and return of assets (ROA) were calculated using net income, total assets, and total shareholders equity reported in the company's income statements and balance sheets. Preliminary data suggests family-owned firms may exhibit strong ROE and ROA reflecting and resulting in long-term strategic focus in financial management. The study found that ownership structure impacts corporate performance by providing insights for investors and evaluating firm efficiency and value.Keywords: Family Ownership, Profitability, ROE, ROA, Corporate Finance