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

Christian Espinosa-Méndez ^[1] ; Mauricio Jara ^[1]
1. [1] Universidad de Santiago de Chile
  
  Universidad de Santiago de Chile
  
  Santiago, Chile
Localización: Revista española de financiación y contabilidad, ISSN 0210-2412, Vol. 50, Nº 4, 2021, págs. 441-468
Idioma: inglés
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Resumen
- In 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