Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Family Business, Firm Efficiency and Corporate Governance Relation: The Case of Corporate Governance Index Firms in Turkey

Author(s): Eyup Kahveci, Bert Wolfs

In this paper, corporate governance and the family business structure, and their effects on firm performance are investigated. The empirical analysis is conducted with 45 Turkish jointstock companies listed on the Borsa Istanbul Stock Exchange and indexed in the Corporate Governance Index of BIST. Family businesses are the least efficient in terms of DEA score and have the lowest CGR scores on average. The results reveal positive relationship between both family business and firm performance and family business and CGR. Moreover, CGR scores do not have any significant relationship with firm performance. There is also a positive relationship between all ownership structures and firm performance. According to industry results, technology and the construction industry have the highest scores whereas financial industry and wholesale and retail industry have the lowest efficiency scores on average. In addition, relationship between industry group and firm performance is not significant.

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