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For performance we have taken market performance ( Tobin Q) and traditional accounting performance measures ( ROGA, ROE) for representing firm performance as Bhagat and Bolton (2008) states that stock market performance is more subject to investors anticipation hence doesn't accurately reflect the real performance of the firm. Since this study is concentrating on the impact of family board characteristics on the financial performance of the firm so we have chosen independent variables which correspond to family presence in the board. To find the relationship of these variables with performance a simple regression is done by taking age of the firm and total assets as control variables.

Table 6 presents linear regression between performance variables Tobin Q, ROGA, ROE and independent variables family shareholdings, promoters, family CEO, family chairman and board operating mode. Findings from table 4 for the relationship between shareholding and performance is inconclusive as it is performance variable dependent. For Tobin's Q as performance variable shareholding is positively associated with family shareholding thus supporting the results obtained by Anderson and Reeb (2003), Villalonga and Amit (2006b), McConaughy et al. (1998), Miller et al. (2008). But if we take accounting measures such as ROA and ROE this relationship between family shareholding and performance disappear, which make this relationship more complicated. As table 6 shows strong significance (.003) for relationship between family shareholding and stock market performance of firm so we can infer that family involvement improves stock market performance of firm but its impact on accounting performance is insignificant.

Regression analysis also indicates that promoter's presence in the board as board members do not influence the financial as well as accounting performance of the company. This can be explained with the help of past researches where researchers like Hermalin and Weisbach (1988) and Berghe and Levaru (2004)argue that outside directors bring skill and expertise with them which make them more valuable than inside directors. Most of the family businesses are highly diversified and need not only multiskills to govern but also skill update to survive in one of fastest growing economy in the world, so it can be said that promoters who believe in traditional methods of running business are not effective.

As clear from regression analysis family CEO significantly and negatively affects financial performance of a family owned firm. All three performance measures provide similar and significant result hence making it a strong conclusion. These results clearly indicate that non family CEOs perform better than family CEO which is in the same line as evidenced by past researches. As Burkart et al. (2003) argue that when firm operation demand high managerial ability at that time CEO ability is very crucial for firm performance, so in such a case professionally sound non family CEO can perform better than family CEO. Anderson and Reeb (2003) argue that family CEOs perform better th本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。