FAMILY PROPERTY AND ENTREPRENEURIAL PERFORMANCE: EVIDENCE OF BRAZILIAN COMPANIES COMPOSING B3 IBRx100 INDEX

Authors

  • Dalci Mendes Almeida Universidade do Sul de Santa Catarina UNISUL
  • Leonardo Flach Flach Universidade Federal de Santa Catarina UFSC

DOI:

https://doi.org/10.22561/cvr.v31i2.4924

Keywords:

Family property, Business performance, Family business, Non-family business

Abstract

This study aims to verify whether there is a significant relationship between family ownership and the performance of Brazilian companies that make up the B3 IBRx100 index. In this research, the sample is formed by 80 companies, composed of 45 non-family members and 35 family members. The data were collected in the Economática® database, and also in the reference form, for the periods from 2012 to 2016. The model applied followed the study by Shyu (2011) and the statistical method used was the modeling of simultaneous panel equations. and descriptive analysis. The hypothesis that there is a significant relationship between family ownership in the performance of Brazilian companies and that there is a degree of ownership that is conducive to optimizing the performance of Brazilian family companies has not been confirmed. The research brings theoretical contributions, as it advances the theme between family business and business performance, when it relates family ownership to economic, financial and market performance, and practice, through evidence to managers that family owned business does not always have an impact results. Although the results contradict some previous empirical studies, the set of empirical evidence from this research should be interpreted with caution, as there is no consensus between family ownership and business performance. It is concluded that family ownership has no influence on business performance.

Author Biographies

Dalci Mendes Almeida, Universidade do Sul de Santa Catarina UNISUL

Professora nos Cursos de Graduação em Ciências Contábeis, Administração e Engenharia Civil e Pós Graduação Latu Sensu. 

Líder do Grupo de Pesquisa em Controladoria GRUPEC.

Membro da Comissão Própria de Avaliação CPA.

Leonardo Flach Flach, Universidade Federal de Santa Catarina UFSC

Professor do Programa de Pós-Graduação em Contabilidade da

Universidade Federal de Santa Catarina - UFSC

References

Abor, J. & Biekpe, N. (2007). Corporate governance, ownership structure and performance of SMEs in Ghana: implications for financing opportunities. Corporate Governance, 7 (3), 288-300. DOI:10.1108/14720700710756562.

Acquaah, M. (2013). Management control systems, business strategy and performance: A comparative analysis of family and non-family businesses in a transition economy in sub-Saharan Africa. Journal of Family Business Strategy, 4 (2), 131-146. DOI:10.1016/j.jfbs.2013.03.002.

Altman, E. I. (1971). Railroad bankruptcy propensity. The Journal of Finance, 26 (2), 333-345. DOI:10.2307/2326049.

Anderson, R. C. & Reeb, D. M. (2003). Founding-family ownership and firm performance:evidence from the S&P 500. The Journal of Finance, 58 (3), 1301-1328. DOI:10.1111/1540-6261.00567.

Anderson, R. C., Duru, A. & Reeb, D. M. (2012). Investment policy in family controlled firms. Journal of Banking & Finance, 36 (61744-1758. DOI: 10.1016/j.jbankfin.2012.01.018.

Audretsch, D. B., Hülsbeck, M. & Lehmann, E. E. (2013). Families as active monitors of firm performance. Journal of Family Business Strategy, 4 (2), 118-130. DOI: 10.1016/j.jfbs.2013.02.002.

Andres, C. (2008). Large shareholders and firm performance – an empirical examination of founding-family ownership. Journal of Corporate Finance, 14 (1), 431-445. DOI:10.1016/j.jcorpfin.2008.05.003.

Barontini, R. & Caprio, L. (2006). The effect of family control on firm value and performance: evidence from Continental Europe. European Financial Management, 12 (5), 689-723. DOI:10.1111/j.1468-036x.2006.00273.x.

Beaver, W. H. (1966). Financial ratios as predictors of failure. Journal of accounting research, 4 (1), 71-111. DOI:10.2307/2490171

Black, B. S. (1992). Institutional investors and corporate governance: the case for institutional voice. Journal of Applied Corporate Finance, 5 (3), 19-32. DOI:10.1111/j.1745-6622.1992.tb00223.x.

Casson, M. (1999). The economics of the family firm. Scandinavian Economics History Review, 47 (1), 10-23. DOI:10.1080/03585522.1999.10419802.

Colarossi, F., Giorgino, M., Steri, R. & Viviani, D. (2008). A corporate governance study on Italian family firms. Corporate ownership & control, 5 (4), 93-103. DOI:10.22495/cocv5i4p8.

Chen, C. R., Guo, W. & Mande, V. (2003). Managerial ownership and firm valuation: evidence from Japanese firms. Pacific-Basin Finance Journal, 11 (3), 267-283. DOI:10.1016/s0927-538x(03)00024-6.

Chen, C. R. & Steiner, T. L. (1999). Managerial ownership and agency conflicts: a nonlinear simultaneous equation analysis of managerial ownership, risk taking, debt policy, and dividend policy. The Financial Review, 34 (1), 119-136. DOI:10.1111/j.1540-6288.1999.tb00448.x.

Chung, K. H. & Pruitt, S. W. (1994). A simple approximation of Tobin’s Q. Financial Management, 23 (3), 70-74. DOI:10.2307/3665623

Demsetz, H. & Villalonga, B. (2001). Ownership structure and corporate performance. Journal of Corporate Finance, 7 (3), 209-233. DOI:10.1016/s0929-1199(01)00020-7.

Filatotchev, I., Lien, Y. C. & Piesse, J. (2005). Corporate governance and performance in publicly listed, family-controlled firms: evidence from Taiwan. Asian Pacific Journal of Management, 22, 257-283. DOI:10.1007/s10490-005-3569-2.

Faccio, M., Lang, L. H. P. & Young, L. (2001). Dividend and expropriation. American Economics Review, 91 (1), 54-78. DOI: 10.1257/aer.91.1.54

Family Firm Institute. (2017). Pontos de dados globais. Recuperado em: http://www.ffi.org/?page=GlobalDataPoints, 2017. Acesso em 12 setembro.

Goes, T. H. M., Martins, H. H., & Machado Filho, C. A. P. (2017). Desempenho Financeiro de Empresas com Características Familiares: Análise de Empresas Brasileiras Listadas na BM&F. Revista de Gestão, 24(3), 197-209. DOI:10.1016/j.rege.2016.06.011.

Castro, G. R. & Aguilera, R. V. (2014). Family involvement in business and financial performance: A set-theoretic cross-national inquiry. Journal of Family Business Strategy, 5 (1), 85-96. DOI:10.1016/j.jfbs.2014.01.006.

Holderness, C. G. & Sheehan, D. P. (1988). The role of majority shareholders in publicly held corporations: an exploratory analysis. Journal of Financial Economics, 20, 317-346. DOI:10.1016/0304-405x(88)90049-9.

James, H. (1999). Owner as manager, extended horizons and the family firm. International Journal of Economics and Business, 6 (1), 41-56. DOI:10.1080/13571519984304.

Jensen, G.R., Solberg, D.P. & Zorn, T.S. (1992). Simultaneous determination of insider ownership, debt and dividend policies. Journal of Financial and Quantitative Analysis, 27 (2), 247-263. DOI:10.2307/2331370.

Lunardi, M. A., Barbosa, E. T., Rodrigues Junior, M. M., Silva, T. P. & Nakamura, W. T. (2017). Criação de Valor no Desempenho Econômico de Empresas Familiares e não Familiares Brasileiras. Revista Evidenciação Contábil & Finanças, 5 (1), 94-112. DOI:10.18405/recfin20170106.

Martínez, J. I., Stöhr, B. S. & Quiroga, B. F. (2007). Family ownership and firm performance: Evidence from public companies in Chile. Family Business Review, 20 (2), 83-95. DOI:10.1111/j.1741-6248.2007.00087.x.

McConnell, J. & Servaes, H. (1990). Additional evidence on equity ownership and corporatevalue. Journal of Financial Economics, 27 (2), 595-612. DOI: 10.1016/0304-405X(90)90069-C

Minichilli, A., Brogi, M. & Calabrò, A. (2015). Weathering the storm: Family ownership, governance, and performance through the financial and economic crisis. Corporate Governance (Oxford), 24 (6), 552-568. DOI:10.1111/corg.12125.

Morck, R. K., Shleifer, A. & Vishny, R. (1988). Management ownership and market valuation: empirical analysis. Journal of Financial Economics, 20, 293-315. DOI: 10.1016/0304-405x(88)90048-7.

Oro, I. M., Beuren, I. M. & Hein, N. (2009). Análise da eficiência de empresas familiares brasileiras. RAE-eletrônica, 8 (2), 1-27.

Oro, I. M., Beuren, I. M. & Hein, N. (2009a). Análise da relação entre a estrutura de capital e o lucro operacional nas diversas gerações de empresas familiares brasileiras. Contabilidade Vista & Revista, 20 (1), 67-94.

Pound, J. (1991). Proxy voting and the SEC: investor protection versus market efficiency. Journal of Financial Economics, 29 (2), 241-285. DOI:10.1016/0304-405x(91)90003-3.

Price Waterhouse Coopers. Pesquisa global sobre empresas familiares. Disponível em: http://www.pwc.com.br/pt/setores-de-atividade/empresas-familiares/2017/tl_pgef_17.pdf. Acesso em: 26 junho, 2017.

Ross, S. A. (1977). The determination of financial structure: the incentive-signalling approach. Bell Journal of Economics, 8 (1), 23-40. DOI:10.2307/3003485.

Scarpin, J. E., Almeida, D. M. & Machado, D. G. (2012). Endividamento e lucratividade: um estudo em empresas familiares e não familiares que compõem o índice IBRX-100 da B3. Revista Ambiente Contábil, 4 (2), 93-109.

Segura, L. C. & Formigoni, H. (2014). Influência do controle e da gestão familiar no endividamento das empresas abertas Brasileiras: um estudo quantitativo. Brazilian Business Review, 11 (6), 51-76. DOI:10.15728/bbr.2014.11.6.3.

Shyu, J. (2011). Family ownership and firm performance: evidence from Taiwanese firms. International Journal of Managerial Finance, 7 (4), 397-411. DOI:10.1108/17439131111166393

Singh, M. & Davidson, W.N. (2003). Agency costs, ownership structure and corporate governance mechanisms. Journal of Banking and Finance, 27, 793-816. DOI:10.1016/s0378-4266(01)00260-6.

Trasobares, A. H. & Górriz, C.G. (2016). Diversification and family control as determinants of performance: A study of listed business groups. European Research on Management and Business Economics, 3 (1), 46-54. DOI:10.1016/j.iedeen.2016.04.001.

Tres, G., Serra, F. & Ferreira, M. (2014). O tempo de mandato do CEO e o desempenho das empresas: Um estudo comparativo de empresas familiares e não-familiares brasileiras. Revista Gestão & Tecnologia, 14 (3), 5-31. DOI: 10.20397/2177-6652/2014.v14i3.732

Wang, K. T. & Shailer, G. (2017). Family ownership and financial performance relations in emerging markets. International Review of Economics and Finance, 51, 82-98. DOI:10.1016/j.iref.2017.05.014.

Wooldridge, J. M. (2011). Introdução à Econometria: Uma Abordagem Moderna. Tradução da 4a. Edição Norte-Americana.

Published

2020-07-12

How to Cite

ALMEIDA, D. M.; FLACH, L. F. FAMILY PROPERTY AND ENTREPRENEURIAL PERFORMANCE: EVIDENCE OF BRAZILIAN COMPANIES COMPOSING B3 IBRx100 INDEX. Contabilidade Vista & Revista, [S. l.], v. 31, n. 2, 2020. DOI: 10.22561/cvr.v31i2.4924. Disponível em: https://revistas.face.ufmg.br/index.php/contabilidadevistaerevista/article/view/4924. Acesso em: 22 nov. 2024.