DIVERSIFICATION AND FAMILY CONTROL AS DETERMINANTS OF PERFORMANCE: A STUDY OF LISTED BUSINESS GROUPS

Alejandro Hernández-Trasobares () and Carmen Galve-Górriz ()
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Alejandro Hernández-Trasobares: Universidad de Zaragoza (Spain)
Carmen Galve-Górriz: Universidad de Zaragoza (Spain)

European Research on Management and Business Economics (ERMBE), 2017, vol. 23, issue 1, 46-54

Abstract: The study analyses the individual and joint impact of family control and diversification on the perfor-mance of major Spanish corporations, considering the nature of the ltimate owner of non-family groups.The study uses a sample of ninety-nine Spanish corporations, each comprising a parent company listed onthe stock exchange and a set of subsidiaries. Heckman’s two-step correction is used to eliminate selectionbias and the endogeneity of family ownership. Different models are contemplated in which we alysethe impact of both diversification and the family nature of a business on performance, established asTobin’s q-value. The results show how family control has a egative impact on Tobin’s q-value, and thatdifferences are greater between family groups and non-family groups controlled by banks and/or foreignagents. They also show ow diversification does not affect the creation of value either individually orconsidering the possible moderating effect of family ownership. / 0

Keywords: Family firm; Business group; Diversification; Performance; Ultimate owner (search for similar items in EconPapers)
JEL-codes: L25 M21 (search for similar items in EconPapers)
Date: 2017
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