This study examines whether family ownership, a prevalent ownership type, is associated with cost elasticity, and the mechanism through which this effect occurs. The contribution is threefold. First, we find higher cost elasticity in family firms than in non-family firms. Second, results from...

This study explores the relation between family ownership and cost elasticity. Using a sample of 1,746 European firms, we first find that family ownership, a prevalent ownership type with unique characteristics, is associated with greater cost elasticity. Further, we use four empirical settings...