The assessment of corporate governance in family and non-family businesses

• Autor(a) principal: Soares, Gonçalo Miguel Martins
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/27433
• topic: Corporate governance; Empresa familiar -- Family business; Measures of financial performance; Governo societário; Medidas de desempenho financeiro

The last financial crisis has brought global attention to a practice that has been studied over the past years and is called Corporate Governance. This phenomenon has become more relevant in the last decade with the ESG criteria, and it is expected to remain this way for a long period of time. It has changed the way companies are organized around the world and led to the success of many companies by helping them avoid agency costs. However, despite the number of studies in this area, there is still much to study about the impact of Corporate Governance on family businesses and how best practices help these companies overcome risks typical of their shareholder structure. This paper acknowledges and explores Corporate Governance’s most important dimensions in the financial performance of a company and then compare its impact between family and non-family businesses. The paper results show that Board Functioning and Board Composition have significant impact in financial performance. Moreover, family firms that have a succession plan for the board and an audit independent committee are more likely to have a better performance. Results also show that family businesses have a higher Return on Assets than non-family businesses.