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The Role of Family Control on Financial Performance of Family Business in Gebze

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  • Huriye SABANCI ÖZER

    (Business Administration Programme, Istanbul, Turkey)

Abstract

This paper analysis the role of family control on financial performance of family business by using the key financial data of family businesses of 16 firm registred to Gebze Chamber of Commerce. In this paper, financial performance of a family business is measured by using Return on Assets, Return on Sales and Total Debt/Total Assets ratios. The family member CEO is more successful as far as ROA ratios concerned, but is less successful as far as TD/TA ratios concerned, in comparison to non family member CEO. In other words, the non family member CEO is more successful as far as TD/TA ratios concerned, but is less successful as far as ROA ratios concerned, in comparison to family member CEO. Additionally, as far as ROS ratios concerned, there is no significant difference between family member CEO and non family member CEO. Overall, the results are consistent with the hypotheses that there is difference between ROA of family member CEO and non family member CEO, and there is difference between TD/TA of family member CEO and non family member CEO.

Suggested Citation

  • Huriye SABANCI ÖZER, 2012. "The Role of Family Control on Financial Performance of Family Business in Gebze," International Review of Management and Marketing, Econjournals, vol. 2(2), pages 75-82.
    • Handle: RePEc:eco:journ3:2012-02-7
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    References listed on IDEAS

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    More about this item

    Keywords

    Family business; Family control; Financial performance;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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