Family involvement in governance of family business groups

Abstract

The paper analyzes the pervasiveness of family board memberships within family business groups (FBGs), which are large and diversified form of family businesses dominant in emerging economies. The data pertain to 2017 and include board information on 640 firms affiliated to the largest 26 FBGs in Turkey. The study cluster analyzes the FBGs according to family involvement in their governance. Derived from different theoretical lenses, it also aims to identify the variables that condition different clusters. Results show that several decades after liberalization, families still control the groups pervasively though with varying degrees. Regarding the extent of family involvement in governance, different clusters are identified as tight control, vertical control, and loose control. Ownership structure emerges as the main antecedent that differentiates FBGs in different clusters.