Influence of Family Ownership and Management on Firm Performance: Evidence from Public Firms in Turkey

Pinar Sener

Revue de l'Entrepreneuriat, 2014, vol. 13, issue 3, 143-169

Abstract: Using a panel of 210 publicly listed Turkish firms from 2007 to 2010, this study examines the influence of family involvement on firm accounting and market performance in an emerging country context. The findings reveal that while moderate levels of family ownership and active family management are positively associated with profitability, family ownership and having a family chairman are negatively related to firm market value. These contradictory results demonstrate that the lack of well-developed legal and regulatory institutions and efficient external corporate control mechanism in emerging countries constitute an impediment to the translation of higher accounting profitability into higher market value. In addition, this study reveals that the use of control-enhancing mechanisms, which is negatively associated with accounting performance, decreases market value if family members serve as CEO or chairman.

Keywords: family ownership; family management; performance; institutional environment (search for similar items in EconPapers)
Date: 2014
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