4.3.3. Government Ownership and Firm Performance

We found that a significant and positive relationship runs between government ownership and performance of family firms, measured by ROA. For all firms, government ownership shows a positive impact on ROA, and a negative effect on Tobin's Q, although none of them is significant. By contrast, a negative relationship is found to run between government ownership and firm performance in both measures of firm performance for non-family firms, but the effect is not significant. Notably, government ownership turns out to be negative for family firms when it interacts with family ownership, indicating that family firms can reap the benefits of government stakes up to a certain threshold level. In this tune, Fukuda et al. (2018) concluded that the effect of government ownership on firm performance varies depending on the state of the company. Good and normal companies are likely to possess a negative relationship between government ownership on firm performance, while bad companies have a positive association between the same (Fukuda et al. 2018). As the *p*-value of government ownership is found to be significant with ROA for family firms, we accept H3. However, we note that government ownership contributes to firm performance up to a certain threshold level.
