Essence Taxonomy of Brazilian family businesses and governance strategy implications

Seminar abstract

This study advances the discussion on the governance of family businesses in emerging markets by exploring a taxonomy based on the F-PEC model in order to improve the essence concept, as an antecedent of governance strategy.

It may enable the entity to adapt during its lifetime. The survey covered unlisted private Brazilian family businesses, from which a final sample of 107 firms were obtained.

Multiple data analysis procedures were applied, including exploratory factor and confirmatory factor analyses, cluster analysis and discriminant analysis.

Four types of family business emerged;

• family control
• dedicated family control with strong value
• family business after founder time with strong values
• family involved in control and management

This presentation fills some of the knowledge gaps by developing taxonomy based on family business essence as well as on an emerging markets and by offering a family business taxonomy without the influence of the stock market.

The conclusions provides a contribution to governance literature by identifying one profile that deviates for from the concept of essence and three others that are adherent due to different combinations of power, experience, and culture elements.

The family business particularities identified in the different clusters involve different implications for governance in terms of individuals, structure, activities, and rules.

Booking

This research seminar is free to attend with no need to book in advance. We warmly invite you to share with friends, colleagues and classmate.

Speaker bio

Professor Fabio Frezatti is a Professor in the Accounting and Actuarial Sciences Department since 1997 and the Dean of the School of Econometrics, Business and Accounting of University of Sao Paulo (USP) since 2018. He had previously held the position of Coordinator of the graduate programme in Accounting and Controllership at FEA USP.

He graduated in Business Administration, Masters in Business Administration and PhD in Accounting and Controllership all from USP. He has also served in a postdoctoral position at the University of Illinois in 2000.

Fabio previously worked as a Financial Executive for several companies, occupying executive positions, mainly in multinational organisations, He served as an Administrative Director and Research Director at FIPECAFI, a foundation that supports the Accounting and Actuarial Sciences Department. He was elected Vice President of IPECAFI and currently works as Chairman of the Board of the Fundação Fundo Patrimonial FEA, an endowment fund, during the period of 2018 - 2022.

Professor Frezatti supported the Brazilian Federal Research Agencies (CAPES and CNPq) as an advisory council. He served as head of the Accounting and Actuarial Sciences Department at FEA USP and representing the Faculty of Economics, Administration and Accounting for the University council of USP. H was also elected a member of USP's Budget and Heritage Committee.

Fabio is a founding member of ANPCONT, National Graduated Course Association and its first president.

His current research focus is the family business segment under themes of management control.

He is the editor-in-chief of the journal Revista Contabilidade and Finanças USP (Accounting and Finance Review USP) since 2011.

As for publications, Professor Frezatti has featured in Brazilian and International academic journals, this includes over 50 papers registered in conference proceedings in the many countries including USA, Japan, Italy etc...

Fabio has authored six books about the following topics; 

• value management in the company
• business budget
• cash management
• management of economic-viability financial investment projects
• management control 
• problem-based learning

He received the 1987 Levi-Strauss International Award for work related to cash flow. He was the recipient for co-authored published work 2007 Emerald Literati Network Highly Commended Award.