Two out of every three listed companies in India are family-controlled, making the country home to the largest block of family businesses within Asia, a study said on Thursday.

The study, conducted by global financial services major Credit Suisse, found that 67 per cent of all listed companies in India were family-controlled entities.

This was highest among the 10 Asian countries covered in the study and also higher than the across-Asia figure of 50 per cent of all listed companies being family businesses.

China had the lowest percentage of family businesses (13 per cent), mainly because of its state-owned economic structure.

The study, however, found that the family-controlled businesses were delivering impressive investor returns and have been crucial sources of wealth and job creation.

Noting that family businesses contribute significantly to investments and employment, Credit Suisse said that these businesses in India account for half of all corporate hirings.

Also, the fixed-asset investments by family businesses in India has consistently grown stronger since 2006, when compared to non-family businesses.

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China had the lowest percentage of family businesses (13 per cent), mainly because of its state-owned economic structure.

The study, however, found that the family-controlled businesses were delivering impressive investor returns and have been crucial sources of wealth and job creation.

Noting that family businesses contribute significantly to investments and employment, Credit Suisse said that these businesses in India account for half of all corporate hirings.

Also, the fixed-asset investments by family businesses in India has consistently grown stronger since 2006, when compared to non-family businesses.

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Across Asia, the family businesses were found to be heavily concentrated in the consumer discretionary sector, followed by the financial and industrial sectors.

In India, however, a higher concentration was found of technology-related family businesses.

Despite two severe bear markets amid the internet bubble crisis in 2002-2003 and the global financial crisis in 2008-2009, family businesses outperformed their local benchmarks in seven of the 10 Asian markets during 2000-2010.

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Family businesses in China, Malaysia, Singapore and South Korea achieved the strongest outperformance in total return against their local benchmarks during the period.

Indian family businesses returned an impressive 15.8 per cent total annual return during 2000-2010, but it was below the broader market return of 19.3 per cent over the decade.

Asian family businesses have a relatively short equity market history as 38 per cent of the family businesses reviewed in the study were listed only after 2000.

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Credit Suisse said that it has considered those companies as family-controlled, where a family (or an individual family member) controlled at least 20 per cent of cash flow, directly or indirectly, through holdings in private or public entities.

The study development trends and economic contribution of 3,568 publicly listed family businesses with market value of over $50 million and evaluated financial performance of 1,279 publicly listed family businesses in ten countries.

The countries covered in the study were China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea and Thailand.