Résumé
This short report investigates the stock market behavior
of Swiss companies during the COVID-19 pandemic.
Results suggest that family firms performed better during
the outbreak and post-lockdown periods than widely-held
firms. Family firms also displayed a larger abnormal trading
volume drop than widely-held companies. In size-sorted
subsamples, the volume difference appears more pronounced
for smaller firms. We explain these findings by family firms, especially smaller ones, predominantly attracting investors with a long-term horizon. Such investors are less likely to sell during market turmoil, making family firms not only less liquid but also less sensitive to market fluctuations.