The Analyses of Financial Performance of Family Businesses Traded in Borsa Istanbul

In this study, the financial performance of family businesses were compared with the financial performance of other non-family businesses. Family business was defined as the type of business in which a person or a family has at least 20% of the shares of any business. Return on assets, return on equity, return on sales and ratio of market value to book value were used as financial performance measures. In all regression results, it was seen that the return on equity was negatively influenced by the fact that a business is a family business. Similarly, the top manager of the company from family member negatively affected 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 was from the family has not affected any of the performance criteria statistically significantly. The fact that the top manager of the company was also the chairman of the board of directors has affected the return on equity for all family and non-family businesses positively. It was also observed that the return on assets and the ratio of market value to book value were negatively affected by financial leverage while positively affected by sales. The business age has positively affected the ratio of the market value to the book value, in addition to the fact that chairman of the board was male positively affected return on asset