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Theoretical and empirical differences between the interlocked boards of family and non-family firms

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  • Caiazza, Rosa
  • Phan, Phillip H.
  • Simoni, Michele

Abstract

Class hegemony and resource dependence are the traditional perspectives used to explain interlocking directorate formation in publicly listed corporations. A subset of these corporations, family firms, are different because their governance involves non-economic interests. There are few empirical validations of these perspectives for family firms. Through a 16 semi-annual period longitudinal comparison of non-financial family and non-family Italian firms, we show that the traditional perspectives partially explain board formation in family businesses while other considerations such as family ties provide a more complete picture. Over the same period, we find that family and non-family firm interlocks evolve differently, suggesting refinements on theories of board interlocks for family firms.

Suggested Citation

  • Caiazza, Rosa & Phan, Phillip H. & Simoni, Michele, 2023. "Theoretical and empirical differences between the interlocked boards of family and non-family firms," Journal of Family Business Strategy, Elsevier, vol. 14(2).
    • Handle: RePEc:eee:fambus:v:14:y:2023:i:2:s1877858522000420
    DOI: 10.1016/j.jfbs.2022.100518
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