Family Ownership Influence on Cost Elasticity
研究了1746家欧洲企业，发现家族所有权与更高的成本弹性相关，主要通过调整销售管理费用实现，而非增减员工。
This study explores the relation between family ownership and cost elasticity. Using a sample of 1746 European firms, we first find that family ownership, a prevalent ownership type with unique characteristics, is associated with greater cost elasticity. Further, we use four empirical settings to increase our confidence that a higher cost elasticity is attributable to family ownership. We also document that family firms achieve greater operating cost elasticity primarily through modifying SG&A costs in response to changing sales, but not by hiring or firing employees. These findings extend prior studies on ownership effects on cost structures, suggesting that family ownership matters in understanding firms’ cost elasticity choices.