This study investigates the effect of family ownership on strategic financial policies of the firms in Pakistan. These strategic financial decisions consist of capital structure, dividend policy and investment decision. The univariate analysis of study shows that a significant difference exists between family and non family firms in terms of firm’s characteristics such as total debt ratio, long term debt ratio, dividend per share, tangibility, profitability, size, Tobin’s Q, liquidity, business risk, cash flows and investments. The multivariate analysis of study consists of three parts. In first part, this study examines the effect of family ownership on debt ratios and in second part investigates the effect of family ownership on dividends and in third part explores the investment cash flow sensitivity of family and non family firms. This study results reveal that family firms maintain significantly high “total debt ratio” and “short term debt ratio” as compare to non family firms; and family firms maintain lower dividends ratio as compare to non family firms; and fixed investment of family firms is lower than non family firms in Pakistan. These findings demonstrate that family firms behave differently than non family firms in Pakistan. Supervisor:- Dr. Arshad Hassan