01654nas a2200169   4500008004100000245009600041210006900137260000900206520103700215653001201252653001701264100001801281700002001299700001901319700001801338856012801356       2023                        eng d00aAre Family Firms More Efficient? Revisiting the U-Shaped Curve of Firm Scale and Efficiency0 aAre Family Firms More Efficient Revisiting the UShaped Curve of   c20233 aThis study applies a stochastic frontier model to examine the relationship between firm size and efficiency using a novel approach. The first novelty is that this study examines large and small firms separately to allow for heterogeneity between firm group sizes in terms of measuring the size-efficiency relationship. The second is that we use a modified frontier model which explicitly includes a family firm variable when measuring firm efficiency. Empirical results reveal that firms are in fact heterogeneous, with small-and-medium-sized enterprises (SMEs) exhibiting a U-shaped scale efficiency curve, while large enterprises (LE) exhibit an efficiency curve which is positive and linear. Robust results also confirm that family firms are relatively more efficient than non-family firms. In addition, while controlling for family firms does not appear to change the firm’s size-efficiency dynamics, failure to control for family firms leads to a bias in characterizing the nature of the firm’s production returns to scale.10aFinance10aOSU-Cascades1 aElston, Julie1 aZhang, Yingchao1 aChen, Ku-Hsieh1 aChen, Pei-Hwa  uhttps://business.oregonstate.edu/biblio/are-family-firms-more-efficient-revisiting-u-shaped-curve-firm-scale-and-efficiency