Analiyses of financial performances of family businesses traded in Borsa Istanbul

In this study, we compared the financial performance of family businesses with the financial performance of other non-family businesses. Family business is defined as the type of business in which a person or a family has at least 20% of the shares of any business. According to this definition, the number of family businesses traded in Borsa Istanbul is 209. In addition, in order to test the validity of the results of our work, the definition of family businesses is changed to '' the type of business in which a person or a family has at least 50% of the shares of any business ''. According to this definition, the number of family businesses traded in Borsa Istanbul is 155. In both cases, the test results are consistent. Return on assets (ROA), return on equity (ROE), return on sales (ROS) and ratio of market value to book value (MV / BV) are used as financial performance measures. In all regression results, it is seen that the return on equity is negatively influenced by the fact that a business is a family business. Similarly, the top manager (CEO) of the company from family member negatively affects the return on equity as well as the ratio of the market value to the book value. The fact that the chairman of the board is from the family has not affected any of the performance criteria statistically significantly. The fact that the top manager of the company is also the chairman of the board of directors affects the return on equity for all family and non-family businesses positively. When the control variables are added to the regression equations, the results do not change. When describing family businesses, the results of the "Robustness Test" regression that we have conducted by changing the "type of business for which a person or a family owns at least 20% of the shares of any business" to 50% are also confirmed by these results. When regression results are examined by adding control variables, it is observed that the return on assets and the ratio of market value to book value are negatively affected by financial leverage while positively affected by sales. The business age positively affects the ratio of the market value to the book value of the business, in addition the fact that chairman of the board is male positively affects return on assets.