The family owned business is the backbone of the world economy. By some estimates, over 90% of all business enterprises in the United States are family-owned and 60% of all employees are in family owned businesses (Ibrahim and Elis, 1994; Colli, 2003). In the UK, approximately 76% of the largest 8,000 companies are either family owned or controlled (Gallo, 1994). Among the largest corporations in the US, approximately 30-40% are estimated to be family owned (Anderson and Reeb, 2003; Anderson, Duru and Reeb, 2009) Researchers have found similar statistics for family firms around the world (Dreux, 1990; Martinez, 1994; Owens, 1994). Therefore, a better grasp of the unique characteristics of family firms is a basis for understanding a significant part of the world’s economy several papers have been written about the unique characteristics of family businesses and their performance compared to that of non-family businesses. Most research done in the field focused on corporate governance measures, family relationships, succession, and performance indicators of family owned businesses. This research article also deals with capital structure & performance of family businesses in India. Article 1: (Kim & Gao) Does Family involvement increase business performance Family involvement in business management attracts much scholarly attention in the field of family business. This paper's main objectives are answering two questions. They are 1) how does family involvement in management affect firm performance? 2) Is the relationship between FIM & Firm performance contingent on a firms goals? This study defines family business as a firm owned and managed by a family or family clan (litz, 1997). This study employs snowball sampling as it is difficult, the study also asked the respondents to indicate whether the firm was owned and managed by a family through a questionnaire. To address the research questions mentioned above, the study uses 158 family firms in China as a context in which to examine the role/impact of family in business performance given the country's strong familiar culture. This study uses as regression to test the hypothesis since the dependent variable is continuous variable (perform) and also Pearson correlation among all the variables. The variables in the study are: Dependent Variables: This study takes both financial & non-financial measures of performance, such as ROI, sales growth, market share, product /service quality &operational efficiency Independent Variables: To measure FIM, the study asked the respondents whether or not family members filled each of the following positons.CEO, vice CEO, CFO/Accounting and financing head, Marketing head, Product/Operation head etc.. Control Variables like firm's size, age, industry owner - manager education, firm location and firm innovation. Results: Correlations among the independent & control variables are modest and exhibit no serious multi- co linearity problem. The Family involvement in management does not significant relate with performance. Article: 12 (allouche,amann et al) The impact of family control on the performance & financial characteristics of family versus non family businesses in Japan. This article tries to investigates the performance & financial structures of family businesses & non family businesses and how level of family control influences the performance in terms of profitability, financial structures. The objectives of the study are to see whether family business are better performers and have stronger financial structures than non family businesses. The article also tests the hypothesis that the level of family control strongly influences the business performance in terms of profitability and financial structures. The data for the study is collected from two sources viz. world scope database & Kurashina's identification of family & non family businesses among listed companies in Japan. The sample consists of the largest companies listed on the Japanese stock exchange totaling the data points to 1217 companies. The researchers created 156 pairs of family & non family companies. To conduct the analysis the study employs a matched pair’s research design. The pairing is done in terms of size which is measured in terms of sales & no. of employees, student’s t test is used in the study. The period of the study is 2003 & 1998. The dependent variables in the study relate to performance (ROA, ROE, ROIC) and financial structure (total debt/total capital, long term debt/total capital).The independent variable is the nature of business, family or non family and degree of family control. The study found that family businesses are better performers and have strong financial structures when compared with non family businesses the results and tests reported clearly are better performers than non-family businesses. The study also confirmed that the level of family control strongly influences performance in terms of profitability. Article 2 Does capital structure depends on group affiliation? an analysis of Indian corporate firms (chakraborty 2011) The main objective of the study is to see whether capital structure decision depends on the group affiliation. The period of study is from the year 2002 to2010 with a sample size of 875 Indian non-financial firms listed either in BSE or NSE for the period of study. The study defines the Business groups as a group of companies that does business in different markets under a common administrative or financial control and its members are linked by relations of inter person ethnic or commercial background Leff (1978). The statistical tools used in the study are pooled OLS, generalized method of moments (4 months and lagged time series analysis. The variables used in the study are Debt/Equity ratio/leverage, profitability, tangibility of Assets, firm’s size, growth opportunities non debt tax shield, uniqueness, group dummy, free cash flows. Results: High profit firms use less debt because they have more internal funds & vice versa and there is a Positive relationship between tangible and leverage assets. Growth & Size are negatively related. FCF's are positively related. NDT's prefer more debt because they can benefit from tax shield due to interest deducibility which contradicts the trade off theory. The most important variable GROUP implies that the group affiliated firms have higher level of leverage than there counterpart of standalone firms. This study can further be used as empirical support to the theories on business groups and internal capital markets which states that companies affiliated to business groups are expected to have better access to capital markets that stand alone firms. The gaps found in this study are: How does group affiliation help emerging economy firms like India for which one has to look into the effect on firms performance of group affiliation which is not addressed in the study.

Article 3 Complex ownership & Capital Structure (Paligorova and Xu ) (2012) The main objective of the study is to find whether the pyramidal firms use significantly more debt than non-pyramids after controlling for firm specific, industry-specific & country-specific factors. The study defines pyramid as a collection of listed firms having an ultimate owner at the top that controls the entire chain firms. This study had been done for the period from 2003 to 2006 with a panel data of 12,167 listed firms in 47 countries during the period of study. The study categories the pyramidal structures into 5 types viz. family industrial co., finance co., finance intermediaries, miscellaneous .The study also states that the most prevalent types of ultimate owners are industrial co., families, finance companies. Definitions: Book leverage is the ratio of book value of debt to the BV of debt + equity market leverage BV of debt to the sum of BV of debt & MV of equity. Market to Book ratio=mv of equity÷bv of equity Profitability=EBITDA÷Total assets Tangibility=ratio of FA÷total assets Tobin's Q=(MV of equity+book assests-book value of equity)÷book assets O/C ratio= ownership rights / control rights CF rights of ultimate owner minimum shares that party owns A low O/C ratio signifies that the ultimate owners have low cash flow rights and high voting rights with respect to the resources in the pyramidal group. Dependent variable: - book leverage, profitability, Tangibility, Market to book ratio, sales Indicator variable: - Family Results: Leverage ratios are lower in family controlled pyramids than in non-family pyramids family controlling shareholders are expected to use more debt. On an average pyramid firms have 7. 659% more leverage than non - pyramidal firms. They also have lower market to book ratio, higher option profitability, fewer tangible assets. Coefficient of profitability has negative sign which is consistent with pecking order hypothesis that more profitable firms have greater amount of internal funds and thus demand less debt. Coefficient of tangibility has a positive sign signifying firms with more tangible assets have more debt as they can give these assets as collateral. The market to book ratio has negative effect on capital structure. Sales, a proxy of size has a positive relationship with capital structure, suggesting that large firms are less likely to go bankrupt have higher debt capacity than small firms. Article 4 The benefits and costs of group affiliation (claessen,Fanelang) (2006) This paper attempts to identify for a large sample of firms from different economies the firm characteristics that affect the relationship between group affiliation and firm valuations with evidence from East Asia. The study had been done for a period of 3 years from 1994 to 1996 with a sample consisting of 1971 listed companies from East Asian countries. The statistical tools used in the study are F-Test, T-Test, and regression OLS method. Korean fair trade commission defines group affiliated firms as those that are owned at least 30% by other firm in the same group. The measure of firm value is a modified Tobin's Q the market to book value of assets defined as the ratio of book assets (-) book equity & deferred tax (+) m.v of equity / book assets. Ownership and control variables are used to capture the degree of potential agency issues for each firm, ownership is defined as the share of the largest ultimate owner in the cash flow rights of a firm. Control is defined as the share of the largest ultimate owner in the voting rights of a firm. The dependent variable is the market to book ratio. The other independent variables are group affiliation, ownership, years since IPO, sales growth, log assets, coverage ratio, dividend, and consolidation dummy variable. Years are measured as number of years since the firm went Public, Sales growth is measured as the natural logarithm of the ratio of the current to previous year sales. Firm size is measured as log assets, the natural logarithm of book assets in millions of dollars. The degree to which the firm is financially constrained is captured by two variables viz.the interest coverage ratio and the dividend payout behavior. The study found that the group affiliated firms in Japan have lower market to book value, less concentrated ownership and control, higher divergent between control and ownership, older in terms of years since IPO, lower sales growth, lower coverage ratio, less likely to pay dividend, larger in terms of log assets and more likely report consolidated financial numbers. Firm value is positively related to firm age, yet negatively related to sales growth, coverage ratio and dividend. There are positive effects of the growth variable on firm value and negative effects on firm size and firm value. Consolidation dummy is expected to be negatively related to firm value.

Article 6 The impact of family owner ship& capital structures on productivity performance of Korean manufacture firms: Corp governance and the chaebol problem (KIM 2006) This paper examines the relationship between corporate governance and productivity performance focusing on family ownership and capital structure. The study gives particular attention to chaebols, or large business groups with entrenched family control. The study employs detailed financial information on Korean firms between 1991 and 1998, collected by National Information & Credit Evaluation Inc. The study uses regression as statistical measure. The study also defines the word chaebol chae meaning wealth or finance and bol meaning lineage; faction or clique with a strong connotation of exclusivity. The organizational features of chaebols are large, family controlled, debt- dependent, and diversified. Variables of the study are equity ratio, chaebol dummy, family ownership size of total assets etc. The study found positive relationship between family ownership and productivity performance to be much stronger in chaebol firms than in non-chaebol firms and high debt reliance to be negatively related to productivity performance in non- chaebol firms but positively in chaebol firms with regard to capital structure, the chaebol problem has to do with chaebol affiliated firms particularly high dependence on debt financing..Productivity index will be estimated using a multilateral index approach originally developed by Caves etal(1982).The linear coefficient ratio are positive and highly significant positive impact of the equity ratio on productivity is increasing as the equity ratio increases. Family ownership concentration is associated positively with firm-level. There is significant positive relationship between equity ratio and productivity performance. Higher debt reliance is found to be negatively related to productivity performance but positively in chebol firms. Article 7 Family ties interlocking directors & performance of business groups in emerging countries The effect of the business groups on performance has long been controversial. It is expected to be positive when the diversification of the group activities leads to internal markets. The idea of an increased performance in business groups is supported by Paredes & Sanchez and by Khanna E Palepu 1999 for a number of emerging countries including Chile. But business groups might have a negative effect on performance if they take advantage of their condition to expropriate minority share holders. To test the effect of business groups on performance the study used a model where performance depends on the economic rights. The sample used for the study is 177 non financial Chilean Corp. traded during the year 2000 statistical methods used in the study is regression. The study defines performance as Tobin’s Q where Q= mv of equity + bv of debt / bv of assets. with the mv of equity being based on closing prices for shares on the last trading day of the year. The study defines business groups are defined by law as a collection of legal entities which share ownership, admin control variables which are other characteristics of a firm that affect performance; firm size, leverage, industry affiliation. The study shows the effect of business groups on firm performance which depends on specific elements of their corporate governance not just on firm affiliation. Article 8 Leverage and business groups: evidence from Indian firms (MANOS, MURINDE and GREEN) The study explains the business group phenomenon of firm ownership structure in emerging markets also theories of firm leverage. The study draw from elements of theories of business as well as capital structure theories to specify a generic model of capital structure which is then estimated and tested on a sample of 1652 quoted non financial firms in India include group affiliated and independent firms. The statistical methods used in the study are regression analysis. The data is retrieved from the prowess database provide by CMIE.The variables in the study are viz. debt ratio measured as total debt to quari mv of total assets other traditional variables(TV), group variables, industry dummies. NDTS defined as the ratio of debt to PBITDA ACID defined as the ratio of net FA to the BV of total Assets, R & D defined as ratio expenditure on R&D and advances to sales natural by size, BSF, Growth, Profitability of sales. The results of the study tell that the values for the adjusted coefficients of determination imply that about 40% of total variation in dependent variable i.e. debt ratio can be attributed to a linear relationship with the variables. The entire tradition variables are significant after doing specific regression and they enter the model with predicted signs. The interaction term of the group dummy remains significant and enters the specific model with predicted positive sign with the idea that group firms tend to have higher debt ratio due to control consideration and better access to external capital. Group variable has negative coefficient which consistent with the virtual MKT and resource sharing theories of groups is inconsistent with the hypothesis and has a negative co efficient implying that in large groups control considerations and hence preference for debt over external equity are not as important as in smaller groups. Conclusion: It is found that the leverage decisions of group affiliated firms are significantly different from these of independent firms as they tend to have higher debt ratios in their capital structure. The study also suggests that the group affiliated firms enjoy exceptional access to government and foreign loans. Article 9 Capital Structure, Equity ownership and Firm Performance This performance investigates the relationship between capital structure, ownership structure & firm performance using a sample of French manufacturing firms. The study assesses the direct effect of leverage on firm performance. The study employs non-parametric data envelopment analysis DEA method. This study uses a directional distance function approach on a sample of French firms from 3 different manufacture Industries to address the following questions. Does higher leverage leads to better firm performance? Would different ownership structures have an effect on firm performance? To what extent our results are driven by certain types of owner’s example family vs. non-family firms. According to agency cost hypothesis higher leverage is expected to lower agency costs, reduce inefficiency and thereby lead to an improvement in firms performance. Several studies report that family firms especially these with large personal owners tend to outperform non-family firms. The variables included in the study are Profitability, Size, asset structure, growth opportunities, ownership structure, and ownership type leverage. The study found that leverage has a significant effect on efficiency and the effect is positive meaning higher leverage is associated with improved firm performance. The study also found that the debt is more important for firm performance for industries with less growth opportunities. Profitability also has a positive and significant effect on efficiency for all industries. The effect of size on leverage is expected to be positive similar in case of tangibility. Growth opportunities are generally associate with an increase in the agency cost of debt and thus expected to have negative effect on leverage. Ownership structure may have positive or negative effect on the amount of debt held in the firm's capital structure. The study found that family firms are much more efficient and more profitable than non family. These differences are statistically significant on average across all industries. Article 5 Capital structure decisions in family firms -empirical evidence from a bank based economy The objective of the study is to examine how family firm characteristics affect capital structure decisions. This study analyses the three important components of a family business viz. Ownership, Supervision & Management board. The study had been done with a sample consisting a dataset of 660 publicly listed companies in broadest German stock exchange index CDAX from 1995 to 2006.Statistical methods like pooled OLS regression and t.test hypothesis testing methods are used in the study. Mishra & Mcconaugly (1999) conclude that US family firms uses less debt to avoid a loss of control and decrease the likelihood of bankruptcy. A firm to be a family firm should qualify the definition of a family firm under the study. According to the researcher a firm is a family firm if it satisfies any of the following conditions: 1. The founding family has voting rights of at least 25%. 2. At least one member of founding family in represented in the supervisory board. 3. At least one member of founding family is involved in the top management. The variables used in the study are Founding family ownership, Family management, book leverage, market leverage ,firm size, profitability, tangible asset ratio, payout ratio, founder CEO. In fact, agency costs are expected to be the lowest if family ownership and management involvement occur at a time. Family participations in the firm's board leads to lower levels of leverage. The Presence of the founder as CEO leads to lower levels of leverage due to lower agency cost within these firms. If both founding family ownership & participation in the management are present then the study expects it to be a very powerful measure of reduced agency costs due to low conflicts between Share holders & management. Firm size has a positive & highly significant correlation with the level of leverage. Firm specific risk is highly significant and positively related to leverage. Firm age is positively correlated with the level of leverage. The tangibility ratio has a positive correlation with the level of leverage .Growth options & profitability have on an average a positive influence on the leverage ratio. Article 10 Comparison of family and non family Business: Fin logic & Personal preference The article tries to find the differences between family businesses and non family businesses based on a sample of 305 Spanish firms. The author first differentiates on the basis of general terms such as company age, sales, employees, Capital and internationalization. The authors also compare the finance ratios of the 2 types of companies. Gallo and Vilaseca(1996, 1998) using a sample of 104 Spanish FB's used less complex financial practices and had very low debt ratios. Family businesses had a lower ratio of leverage, a higher proportion of property assets to T.A lower asset turnover and lower in V in intangible assets and lower profit on investment (Poutziouris, Chittenden, & Michaelas). The authors found that average equity of Family business is smaller by 65% than that of non family business and the average number of share holders is considerably lower in FB's than in NFB's. The average ROE turns out to be higher in NFB's returns on sales calculated before taxes, is very similar for both types of companies. Leverage ratio considerably small in FB's by 48%. The average ratio of sales/total assets is bigger in FB's by 41%, interest coverage ratio is very similar in two types of businesses with regard to dividends the average payout ratio is clearly different. It is lesser in Family business; it is 39% lesser in the last year of the study i.e. 1995. FB's have lower general expenses when compared to NFB's. The dependent averages are lower in FB's when compared to NFB's due to the fact that they are less vertically integrated and operate in less capital intensive industries. Article 11 Does business group affiliations help firms achieve superior performance during industrial downturn Does affiliation with a business group enhance a firm’s performance? What is the potential effect of this affiliation especially in declining economic period? Answering these two questions is the main objective of the study. The focus is placed on the most recent years between 2005 and 2008. The data is derived from the FAME database of the Bureall Van Dik electronic publishing. The study is done on a sample of 62046 firms covering 450 standard industrial classifications. A business group is defined as the constellation of formally independent firms which share common ownership and admin control. Sales growth is employed as the indicator of firm performance. The variables used in the study are firm size, type of owner ship and country of origin firm size is divided into 3 viz. Micro, small, and medium, Large. Three different types of ownership are examined in the study independent, company and others and country of origin Domestic, Europe, North America, Japan, Rest of the world. Micro firms which are most vulnerable in a declining industry benefit most by group affiliation. Large firms derive no positive results from group affiliation. SME's and micro firms when affiliated with business groups of international origin seem to derive up to 7.3 % and 9 % respectively, higher probability of growth than individual SME's and micro firms. SME's and micro firms derive benefits only when affiliated to industrial-company-group, with the later being the group that benefits the most. The study found that affiliation with both domestic and international groups bares benefits for both micros and SME's. The study revealed that the business group firm growth relationship is highly moderated by the origin of the affiliated group and that a significant country effects exists in these associations. In declining industries affiliation with domestic and international company business groups has the most positive effects on growth. Smaller firms seem to derive positive effects from group affiliation in the declining industry, only micro firms seem to benefit in a growing industry. No evidence is found suggesting that SME affiliation with a business group increases their potential for growth in a growing industry. Large firms in growing industry seem to suffer when affiliated with groups. Article 13 Capital Structure in an emerging stock market (case of India) Chakraborty 2010 Analyzing the determinants of capital structure of Indian firms using a panel of 1169 non- financial firms listed in either Bombay stock exchange or NSE over the period 1995- 2008.The study also deals with the alternate theories of capital structure viz. pecking order theory, static trade of theory and agency cost theory. The study takes book leverage as a dependent variables and determinants of capital structure like profitability, tangibility, size, growth opportunities, non-debt tax shields, and uniqueness. The study creates 8 models using the dependent and independent variables after conducting co integration tests. The study concludes that all the 8 models are co integrated after which the study further finds the relationships between variables. Both the measures of profitability EBITDA/TA & CF/TA are negatively significant supporting the pecking order theory, tangibility has a positive relationship with leverage size is negatively significant. In most of the cases growth is positively related, NDTS is positively related; uniqueness is negatively related to Performance. Article 14 Are family firms really superior performers (Miller et.al) Recent researches in the US have produced evidence that family firms offer superior performance. Anderson & Reeb (2003) McConaughy etal (1998) report that Tobins'q of family firms is greater than that of other corporations family firm is one in which multiple members of the same family are involved as major owners as managers. The study uses as many as 26 variables and defines Tobins'q as the ratio of the firms market value to book value and is calculated as follows ((common shares outstanding *calendar year closing price) +( current liabilities - current assets) + (long term debt) +( the liquidating value of preferred stock)) divided by(total assets). The sample for the study consists of Fortune1000 having data for the years 1996 -2000. The study employees Tobins’q as the measure of market base performance. Tobins'q is clearly much higher in lone founder business than in family business. The study also found that the out performance of family business was a result of how these businesses are defined? Family businesses with multiple family members confront more number of governance conditions than lone founder businesses. When we remove lone founder businesses from the family businesses category, there is no longer any evidence of superior market valuations. Article 15 Ownership structure & acquirers Performance Family vs Non Family (Bauzgarrou & Navatte) The researchers investigate the impact of family. Control on French acquirers performance. They considered a sample of 239 acquisitions undertaken by French listed companies between Jan 1997 and Dec 2006 and they also compared both ST and LT performances. They showed that family firms outperform non family firms. Around the announcement date, family firms realize higher abnormal returns than non family firms. Family firms are less likely to make acquisitions especially when the stake held by the family is not large enough to assure the persistence of the control. Bauguess and stagemoller 2008 also shows the family firms make fewer acquisitions than non family firms do. The variables used in the study family firms outperform. They found that family controlled firms outperform non family firms. They also found that the relation depends on control level. They also found that long term stock performance of family forms is positive and statistically significant. Article 16 Business group affiliation ownership structure & the cost of debt. This paper tries to find the relationship between business group affiliated and the cost of debt capital. The researchers examined several factors that influence the relationship viz. firms uncertainty about the future pay offs of debt holder, pledgeble income, position in the group structure. They found from their sample of corporate bonds issued in Korea between 2001 and 2007 that firms affiliated with business groups enjoy a 48 basis point lower cost of public debt relative to independent firms. Their results demonstrate that business group affiliation reduces the cost of debt, while control ownership divergence raises the cost of debt. The results are consistent with the notion that the business groups provide risk share/co insurance to their member firms. The uncertainty about the future payoffs debt holders is negatively related smaller firms with lower tangibility and those with lower profitability benefit more than co insurance effect of the business groups. The implicit protection provided by business group increases with the resources of the group and the diversification effect. Role of business groups in debt market is distinct from the role of ownership structure. Article 17 Are you the right type of Family Business GIBB DYER The view on family business has been changing from year to year. Almost 3 decades ago they are considered to be small, have no impact on economy, inefficient. But according to recent statistics compiled reality on family firms conclude that nearly 35% of fortune 500 firms are family firms over 90% of businesses in North America are family owned. Family businesses in the United States account for 78% of all new job creation, 60% of the nation’s employment and 50% of GDP. Family influences firm performances primarily through family goals and relationships and assets and liabilities. Certain family factors lead to some agency benefits and some factors impose agency cost. There are 4 types of family businesses on the basis of agency costs, assets and liabilities viz. clan family firm (low agency costs and high assets), professional family firm (high agency costs and high family assets), mom and pop family firms(low agency costs high family liabilities) self interested family firms(high agency costs and high family liabilities). Article 18 Corporate finance in Developing countries new evidence for India [Cobham & Subramaniam] Companies in developing countries use more external finance and more use of equity finance than companies in Developed countries. In India in terms of size wise comparison between large and small firms, a number of differences are found. One of the main differences is that internal finance is higher and back loans are lower for larger firms than for smaller firms. Large firms make more use of bond finance than small firms but small firms make slightly more use of equity finance. Large firms in the sample seem to use more internal finance and bonds than smaller firms with the smaller firms have higher bank loans and total borrowing than larger firms. Article 19 Family firms and financial performance (Gonzalez et.al)2012 The study examines the relationship between financial performance and family involvement with a sample of 523 listed and non listed Colombian firms over 1996-2006 by performing several panel data regression models. The researchers consider 3 hypotheses to prove that family involvement in firms has a positive impact on their financial performance. Family performance is measured by the return on assets and the evaluation of family involvement in management uses a dummy variable i.e. family the control variables used in the study are Industry adjusted LT leverage corporation governance mechanisms, board size. The study found that family firms exhibit better financial performance. The effect of having the founder involved as the firms current CEO is positive and statistically significant and family control has a positive impact of firm performance. The results of the support our hypothesis that the positive effects of family involvement diminish as the firm grows and becomes older. The family involvement in all the three dimensions viz. Management, ownership, control found a positive family effect for small and young firms. Article 20 Family ownership and firm performance Empirical evidence from western European corporations (Moury) Active family control is associated with higher profitability compared to nonfamily firms, whereas passive family control does not affect profitability. Active family control continues to outperform non family control in terms of profitability in different legal regimes. Family firms in US tend to have higher valuations and profitability than non family firms. The research used a sample of 1672 non financial firms from 13 western European countries and show that family control is associated with 7% higher valuations and 16% higher profitability. Performance is measured by Tobinq and ROA. Tobinq is the market value of common equity + bv of total assets ---- common equity and deferred taxes divided by the bv of total assets. The study provided that family control firms have higher firm performance. This paper also shows that family control can increase performance in western European firm. Family ownership lowers the agency problem between owners and managers but it may give rise to conflicts between the family and minority shareholders when shareholder protection is low and control is high. Article 21 Performance impact of business group affiliation: An analysis of the diversification performance link in a developing economy (Singh et. al) 2006
The main objective of the study is to understand the performance implications of corporate strategies by business group affiliations. The researchers analyze the relation between corporate diversification and performance for 889 Indian firms. The period of study is from 1998 to2000. They used 3 measures of performance viz. ROE, ROA and profit margin as the performance measures (dependent variables) and independent variables are family dummy and diversified dummy. There are control variables such as leverage, firm size, growth opportunities, Tangibility. The differences between the diversification levels of non affiliated firms and affiliated firms and that between domestic affiliated and MNC affiliated firms are statistically significant. In fact, domestic affiliated are lower while MNC's affiliated are higher on a performance scale relative to non affiliates. MNC affiliate firms have the largest growth options and as such maintain the least amount of debt and domestic affiliated firms are firms with low group options, high leverage and they are most highly levered sub groups.
Article 22 Family investment in business and financial performance: A set theoretic Cross national enquiry (Castro and Arguilera) There are 4 common FIB components related to ownership, governance, management, and succession. This study is applied to a sample of 6592 companies across India. Family firms vary significantly according to the extent and mode of family involvement in the business. They found that particular combinations of FIB components and firm specific features are associated with superior firm financial performance and they also proved that there are no significant positive pair wise correlations between single FIB components and industry adjusted ROE. The results of the study support that the family involvement in business is not the product of the components of family involvement in isolation but that is subject to substantiate complementarities and substitution effects.

Article 23 Macro economics factors and corporate capital structure (Mokhova and Zinecker) 2013 The aim of the study is to indicate the influence of macroeconomics facts on corporate capital structure in different European countries. They analyzed the influence of external determinant on the capital structure of non financial manufactured companies based on the evidence from European developed countries and emerging markets for the period 2008- 2010 to compare the level of impact on the capital structure the variable in the study are macroeconomic factors like nominal interest rate, industrial production and initial IPO returns. In this paper they investigate the relationship between macroeconomic factors represented by indicators of monetary and fiscal policies and corporate capital structure and found that government debt has a positive on the capital structure in emerging markets and negative influence in developed market. Inflation rate has a positive influence in Emerging markets and Germany and negative in France and Greece and found that external determinants of capital structure playa great role in financial decision making process.
Article 24 why can't family businesses be more like a non family businesses? Modes of professionalization (Stewart and Hitt) 2012
The researchers in the study found the differences between non family and family businesses like (Anderson & Roeb). There are no private benefits for non family businesses but there are some private benefits for family and many more. By analyzing 59 empirical studies regarding the effect of family involvement on performance reveals that family involvement generally has a positive effect for public firms and an insignificant or negative effect for private firms. From the public sample studies they draw two provisional conclusions first, the performance of public family firms is better relative to comparable non family firms than in the performance of private family firms second; the public firms that use more professionalism practices experience higher performance. They also found that market results for founder CEO led firms are significantly superior to those for success as CEO led firms whether or not the successor are scion of the family. They also have suggested that the superior performance for publicly family firms is because of entrepreneurial effects and not because of family effects.

Article 25 Family business Risk Profile (Vaknin)
The main objective of the study is to evaluate the financial and capital structure choices made by family businesses in an attempt to characterize the risk profile of the family businesses. The study is divided into 2 parts of which first part deals on the characteristics of the family firm in terms of capital structure and leverage and second part deals with bankruptcy filings in the US during the years 2004, 2006, 2008 and evaluates the proportion of family businesses in the sample. The dataset for part1 comprises of 403 S & P 500 firms in the years 1992- 1999 excluding banks and public utilities firms. The sample for part2 comprises of series of bankruptcy filings of public companies in US in the years 2004, 2006 and 2008. The study conducted series of regressions and t- tests. As an indicator of leverage they used two variables DEBT/EBITDA ratio and Interest coverage ratio. Age is not significant the study concludes indicating that family firms actually have a higher level of debt which is surprising. The family dummy is not significant in the vast majority of the regressions. The study uses Altman z scare to know the risk profile of the businesses. The study also suggests that a family business is actually less risky than non family businesses and family firms have lower financial risk and lower probability of failures and family businesses are younger on average and they are better prepared to overcome periods of difficult financial environment. Family firms are more financially healthy.
Article 26 Capital structure in new technology firms! Evidence from the Irish software sector (Hogan & Huston)
The aim of the study is to examine the capital structures in new technology Irish software firms from a sample of 117 Irish companies. Internal funds are most important source of financing in new technology based firms which is consistent with the findings on financing for other small business. However contradicting the pecking order theory, the use of debt is rare and equity financing is a prime source of external financing. The study also deals with the most important motives of the founders of these firms for being in the businesses in which maximizing the potential selling value of their business is clearly the most important financial objective. They found that internal source of funding dominate both at start-up and on a continuing basis which is in consistent with pecking order theory but however. They have evidence that equity is the primary source of external financing.

Article 27 Capital Structure and competitive position in product market (mitani)
The objective of the study is to examine the effect of capital structure on the competitive position of firms in the product market as measured by the market share. For the study the researcher used a sample 799 manufacturing firms listed in the first section of the Tokyo stock exchange from 1989 - 2004. The study assumes that a firms capital structure influences its market share and the competition intensity among firms influences its capital structure so they verified through simultaneous equations in which both variables are endogenous and the paper also assumes that a firms capital influences its market share and vice versa. The variables used in the study are liquidity, Specificity, Discretionary, growth opportunity, The Herfindahl Hirschman Index (HHI) and leverage as determinants of market share. They found that leverage as determinants of market share. They found that leverage affects the market share positively and market share affects the leverage negatively implying that firms enjoying a high market share restricted debt financing perhaps to maintain their competitive advantage in case agency costs outweigh the strategic benefits associated with the increase in debt.
Article 28: Are founding families special block holders? An investigation of controlling shareholder influence on firm performance (Isakov and Weisskopf)
The main objective of the study is to examine how family and non family ownership affects the performance of Swiss listed firms from 2003 to 2010. The study pays special attention to 3 features of family ownership: the level of the family stake, the generation of the family and the degree of involvement of family members. A company is defined as being widely held if no shareholder holds more than 20% of ultimate voting rights. The performance measures used in the research are Tobins'q and return on assets. The results of the study shows that the founding family firms systematically have a higher accounting based performance & than widely held or non- family block holder firms. Family firms with founder CEO performance better whereas those with descendant CEO underperform significantly compared to widely held firms. Market performance is similar across all companies. Accounting performance is higher in companies in which a family member is active which means that a family member possessing the ability to influence management and a direct way to influence company policies and strategies is essential.

Article 29 Business groups and FDI by developing country firms. An empirical test in India
The aim and objective of the study is to analyze the relationship between business group affiliation and FDI. The data for the study is sourced from CMIE which is a reputed and comprehensive data source covering firms that account for over 70 % of the country's industrial output. They focus on the 2001- 2008 time period. The study shows that business group affiliates on the average have greater amounts of FDI. In addition a greater proportion of business group affiliates have FDI. Business group affiliates on the average invest in more countries than do non-business group firms and the firms affiliated to business groups are on average larger than non business group firms. Business group affiliates have greater amounts of FDI and a greater likelihood of engaging in FDI than independent firms. Business groups are an important driver of developing country firms FDI and that among business groups larger and less diversified business groups promote greater amount of FDI than smaller and more diversified business groups.
Article 30 Business groups and risk sharing around the world
One function is often attributed to business groups in emerging markets i.e. they enable member firms to share risks by smoothing income flows and reallocating money from one affiliate to another. The data for the study is sourced from markets database. Includes data from 12 countries: Argentina, Brazil, Chile, India and Mexico the Philippines, Taiwan, Thailand and Turkey. In Chile, India and Mexico the profitability of group affiliated firms exceeds that of other companies and so does their profit volatility. They found a negative and significant effect of groups on the standard deviation of operating profitability in 4 of the 12 emerging countries in the sample with the exception of India; the group coefficients in the remaining seven countries are negative but not significantly different from zero. They also found that dividends do not play much of a smoothing role in Chile India and Japan. In India Intra group loans dampen shocks to operating profitability. They also found that business groups smooth operating profitability in Japan similar results are obtained for Korea as well as Thailand. They also concluded that business groups around the world do not generally follow the pattern of the Japanese Keiretsu in providing mutual insurance to member firms at least not in the form of smoothening operating performance. Dividends do not seem to be used by groups as a shock absorber and with the evidence from India. There is a doubt on the extent of liquidity smoothening through intra group loans and receivables and IT is not used widely in other countries.