The influence of corporate governance models on financial performance Polish family businesses
|Błażej Socha , Aleksandra Majda|
University of Lodz, Faculty of Management, Department of Finance and Strategic Management, Łódź 90-237, Poland
Family businesses continuously are the most prevalent form of conducting business all over the world. What is more, family businesses have a major impact on the economic development on both global and national economies. Family involvement in the ownership and management of business mostly leads to achieving both economic as well as non-economic goals and clearly emphasizing the role and further development of social capital and, which follows that, the strategic perspective is significantly different between family and non-family ones. The need to realize those objectives influences the used ownership and management models in family businesses. Since the beginning of 21st century one has been able to observe the growing interest of empirical research in the field of: corporate governance structure, family involvement measurement and their impact on financial performance in family enterprises. This is the key reason why the authors would like to present this research problem on the basis of the Polish family businesses results.
The article presents a view (on the basis of theoretical and empirical analysis) of corporate governance models used in Polish family businesses through the financial performance and the capital structure. The empirical analysis covered a sample of 24,000 Polish family businesses in the period of 2008-2013. Use of linear regression has allowed the authors to verify the hypothesis concerning the occurrence of differences in profitability ratios and the capital structure in groups of family businesses using variant management models and allowed verifying the relationship between the degree of control and involvement of the owners in the management and financial performance and the capital structure. The received results, though inconclusive, indicate that the involvement of the owner in the governance process can affect the financial aspect of business. The prepared empirical analysis and conclusions of the article contribute to better understanding of the measures taken on the management and control decisions, what is more, they can provide guidance to owners of family businesses in shaping the corporate governance model.
|Auxiliary resources (full texts, presentations, posters, etc.)|
Presentation: Oral at Current Economic and Social Topics 2015, by Aleksandra Majda
See On-line Journal of Current Economic and Social Topics 2015
Submitted: 2015-12-01 10:42 Revised: 2016-03-14 13:14