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Diversification And Family Control As Determinants Of Performance: A Study Of Listed Business Groups

Author

Listed:
  • Hernández-Trasobares, Alejandro

    (Universidad de Zaragoza (Spain))

  • Galve-Górriz, Carmen

    (Universidad de Zaragoza (Spain))

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

Suggested Citation

  • Hernández-Trasobares, Alejandro & Galve-Górriz, Carmen, 2017. "Diversification And Family Control As Determinants Of Performance: A Study Of Listed Business Groups," European Research on Management and Business Economics (ERMBE), Academia Europea de Dirección y Economía de la Empresa (AEDEM), vol. 23(1), pages 46-54.
    • Handle: RePEc:idi:jermbe:v:23:y:2017:i:1:p:46-54
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    More about this item

    Keywords

    Family firm; Business group; Diversification; Performance; Ultimate owner; 0;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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