International diversification and performance in family firm: Exploring nonlinear relationships with the governance structure in an emerging economy

2021. Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad . Volume 50, Issue 4. Pp 441-468. https://doi.org/10.1080/02102412.2021.1886453

Christian Espinoza M, Mauricio Jara B

Abstract:

n this study, we researched the relationship between international diversification and performance in family firms in an emerging economy. Likewise, from the perspective of the governance structure, we investigated non-linear relationships between business group membership, concentration of ownership as well as pyramid ownership with the performance of internationally diversified family firms.   Considering a sample of 83 companies that have been listed on the Santiago de Chile Stock Exchange during the period between 2003 and 2013, we find an inverted U relationship between international diversification and performance; a U relationship between international diversification and performance in family firms; an inverted U relationship between the performance of internationalised family firms and affiliation to a business group; a U relationship between the performance of internationalised family firms and concentration of ownership; and a non-linear relationship in the inverted U form between the performance of internationalised family firms and high divergence between control and cash flow rights and U in the case of low divergence.

Palabras claves: Family ownership, international diversification, firm performance, emerging economy.

Acceder a la publicación completa