Corporate Governance, Performance and CEO Turnover: A Comparative Study between Family and Non-Family Brazilian Businesses

Recife Finance Lab Working Paper No. 001-2006

23 Pages Posted: 21 Mar 2006

See all articles by Wesley Mendes-Da-Silva

Wesley Mendes-Da-Silva

Getulio Vargas Foundation (FGV) - Finance, Accounting and Controllership Department of Fundação Getulio Vargas (São Paulo, Brazil)

Denize Grzybovski

Passo Fundo University

Date Written: June 2005

Abstract

In recent years, an increasing share of researches on Finance have placed attention to the study of corporate governance, highlighting its implications to the global performance of companies. One of the ways to assess the structures and practices of the corporate governance is to verify the sensibility of executives' turnover to the company performance. In this article we aim at checking if the determinants of executives' turnover in Brazilian companies may be different between family and non-family businesses from the governance viewpoint. The analysis is conducted having as reference a set of 176 industrial businesses listed at Bovespa, segmented by type (family or non-family), between 1997 and 2001. The contribution of this study is in the peculiarities involving the family businesses and which have not been considered in Brazilian researches, and by offering elements to reflect theoretically about the performance of family businesses and their governance structures. The results reveal the existence of significant differences in performance, value and structures of corporate governance between family and non-family businesses. It has also been observed that the companies which obtained better profitability tended to implement a smaller turnover.

Keywords: Family Businesses, Brazilian Industries, Corporate Governance

JEL Classification: G14

Suggested Citation

Mendes-Da-Silva, Wesley and Grzybovski, Denize, Corporate Governance, Performance and CEO Turnover: A Comparative Study between Family and Non-Family Brazilian Businesses (June 2005). Recife Finance Lab Working Paper No. 001-2006, Available at SSRN: https://ssrn.com/abstract=747324 or http://dx.doi.org/10.2139/ssrn.747324

Wesley Mendes-Da-Silva (Contact Author)

Getulio Vargas Foundation (FGV) - Finance, Accounting and Controllership Department of Fundação Getulio Vargas (São Paulo, Brazil) ( email )

Sao Paulo 01313-902, São Paulo
Brazil

Denize Grzybovski

Passo Fundo University ( email )

BR 285 - Km 171 - Campus I, São José, 99001-970
Bairro São Jose
Passo Fundo, Rio Grande do Sul 99010111
Brazil
555433168245 (Phone)

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