Analysing the risk-return relationship in privately held firms: the contingent effect of being a family firm

Purpose The relationship between risk and return has been widely analysed in the scope of listed companies. However present literature leaves uncovered an important study area with regards to privately held firms. In order cover this gap, analyses risk-return trade-off context private enterprises. Furthermore, authors incorporate contingent effect being a family firm on abovementioned relationship. Design/methodology/approach Using information from SABI (Sistema de Análisis Balances Ibéricos) database, sample 2,297 manufacturing firms were for period 2009–2016. So as ascertain proposed hypotheses, dynamic panel data methodology was applied. Specifically, estimated two-step general method moments (GMM). Findings obtained findings reveal that, according prospect theory arguments, adopt conservative attitude toward when results are higher than target level, while becoming seeking lower level. Moreover, fact softens both performance is above level also find themselves lowest performing case. Originality/value This article is, best authors' knowledge, one first studies dealing context. inclusion factor link complete novelty.