Effects of family control on the degree and type of diversification: empirical evidence for business groups

Hernández Trasobares, Alejandro (Universidad de Zaragoza) ; Galve Górriz, Carmen (Universidad de Zaragoza)

Resumen: This article analyzes the impact of ownership structure on corporate diversification,with reference to large listed family business groups. By considering agency theoryand socioemotional wealth, the study examines the relationship between family own-ership, concentration of ownership, and degree and type of diversification. The studyconsiders 99 Spanish listed business groups (50 family-controlled- and 49 nonfamily-controlled groups) and considers diversification of business group as the focus ofanalysis. The results show how family business groups present a lower preference forunrelated diversification than related diversification. There is also a nonlinear rela-tionship between the concentration of ownership in family groups and the degree ofdiversification, showing different behaviors in family groups according to sharesowned by the family's leading shareholders. This article contributes to the literatureby providing a more precise identification of the corporate strategy adopted by busi-ness groups and establishing new evidence about the impact of family control ondiversification strategies and the differences regarding nonfamily business groups.

Idioma: Inglés

DOI: 10.1002/tie.22097

Año: 2020

Publicado en: Thunderbird International Business Review 62, 1 (2020), 93-105
ISSN: 1096-4762

Factor impacto SCIMAGO: 0.553 - Business and International Management (Q1) - Political Science and International Relations (Q1) - Geography, Planning and Development (Q1)

Financiación: info:eu-repo/grantAgreement/ES/DGA/S42-17R-CREVALOR
Financiación: info:eu-repo/grantAgreement/ES/MINECO/ECO2017-86305-C4-3-R

Tipo y forma: Artículo (PostPrint)

Área (Departamento): Área Organización de Empresas (Dpto. Direcc.Organiza.Empresas)