Title: Does family control affect trade performance?
Description: This paper examines whether the export decision of firms is affected by their ownership structure,  specifically it looks at whether family control is an obstacle to entering foreign markets. The  underlying assumption is that family firms are risk averse. Risk aversion may be an obstacle to  entering foreign markets, as far as these are perceived as more volatile and risky than the domestic  one, particularly when such choice entices bearing relatively high sunk costs. We develop an  illustrative theoretical model that shows how the combination between high risk aversion and low  initial productivity may hinder family firms' decision to enter foreign markets, particularly distant  ones. The empirical analysis, based on a detailed panel data set of Italian firms covering the years  from 1995 to 2003, confirms such predictions by showing that family controlled firms do indeed  export less than other type of companies even after controlling for firm heterogeneity in productivity,  size, technology and access to credit.