Econometric Analysis

In this chapter, I present the baseline econometric model and investigate the impact of heterogeneity on firm performance. Specifically, I show that the social, overall, and global heterogeneities are not correlated with firm performance, while the occupational heterogeneity is positively correlated with performance. In the last part, using the global heterogeneity index, I estimate a regression model to verify the relationship between heterogeneity and the number of independent directors. The idea is that family members select independent directors with the aim of importing their heterogenous knowledge, experience, and external connections, which can be missing among family directors. The results support this hypothesis. In the last part, I verify the relation between the “not mandatory variables” and “mandatory variables” and firms’ performance.