Family Ownership and the Business Financial and Nonfinancial Performance In the Midst of COVID-19 Pandemic Implications: Evidence from MENA Region

Moubarak, Hosam Mohamed Ragab ,

doi:10.21608/abj.2024.380801

Family Ownership and the Business Financial and Nonfinancial Performance In the Midst of COVID-19 Pandemic Implications: Evidence from MENA Region

المؤلف

Hosam Mohamed Ragab , Moubarak

Accounting Department, Faculty of Business, Alexandria University, Alexandria, Egypt. Accounting and Information Technology Department, Faculty of International Business and Humanities, Egypt-Japan University of Science and Technology (EJUST), New Borg Al-Arab, Alexandria, Egypt

10.21608/abj.2024.380801

المستخلص

This research aims to study and test how family ownership influences businesses' financial and nonfinancial performance indicators. Moreover, following the recent worldwide hit of the COVID-19 pandemic, the study investigates the various responses of businesses owned by families and nonfamilies to the pandemic implications, which may have impacted business performance. With a sample of 1,211 quarters observations from nonfinancial listed firms on the Egyptian stock market from 2017 to 2022, the study focuses on employing a statistical regression analysis to comprehensively understand the empirical impact of family involvement in businesses and assess their adaptability to the post-COVID-19 ‘new normal’. The paper concludes that, over a six-year research period, family ownership has significantly and positively impacted the firm's financial performance. However, other nonfinancial indicators are seen to be nonuniformly affected by family ownership in Egypt. Furthermore, the analysis suggests that the implications of the COVID-19 pandemic have an insignificant moderating effect on the influence of family ownership on both types of business performance. The research adds to the body of accounting literature by delving into the significance of the long-term nonfinancial performance perspectives for family-owned businesses, which played a defining role in global stock markets. Furthermore, this paper adds to the understanding of different business structures' responses to the challenges posed by COVID-19 by examining the adaptability of these unique businesses to the global crisis.

الكلمات الرئيسية