3.3.3. Other Independent Variables

Profitability measure refers to the return of equity, return on assets, EBITDA margin, and net income margin. Size measure refers to number of employees, total revenues, and total assets. Age is calculated based on the company's date of establishment. Table 1 provides a detailed definition of the variable used.

## *3.4. Descriptive Statistics*

Table 2 shows a simple *t*-test analysis and itssignificance of the difference between family and non-family firms on each of the independent variables used in this study. With respect to the dependent variables, from our *t*-test presented in Table 2, both family and non-family firms exhibit the same risk profiles, even though family firms seem to be less risky than non-family firms. However, further examination is needed for the relationship between the variables in the form of regression estimates while controlling for other possible explanations for the outcome, as revealed in the *t*-test.

Also, the outcomes of the different *t*-tests indicate that most of the controlling variables are different for both family and non-family firms. With respect toprofitability measures, non-family firms appear to be more profitable than their peers. The proxy of age reveals that family firms have a longer time-horizon than non-family firms.

Lastly, across the different industrial sectors, the outcome from the *t*-test shows that, for construction, other services, and restaurant and lodging trades, family firms significantly dominate their non-family counterparts. However, for transport, communication, management and insurance activities, as well as energy, water, and metal transforming industries, non-family firms significantly dominate family firms (See Table 2).




**2.**DescriptiveStatistics.
