Is there a “family premium” in the Chinese stock market?

This study examines the existence of a "family premium" in the Chinese stock market, i.e., whether companies controlled by a founder, or a family group are more profitable than the rest of the listed companies in the Asian giant. To do this, 4250 listed companies from the Shanghai and Shenzhen Stock Exchanges from 2005 to 2020 are analysed using the CSMAR (China Stock Market & Accounting Research) database. The results reveal the existence of a "family premium" in the Chinese stock market, suggesting that the advantages associated with family ownership are reflected even in a unique context like the Chinese market.