Corporate Governance and Financial Performance: The Family SMEs a Special Case

1
Abdellah Tajer
Abdellah Tajer
2
Sanae Benyaich
Sanae Benyaich
3
Hiba El Majhed
Hiba El Majhed
4
Sidi Mohamed Rigar
Sidi Mohamed Rigar

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This paper aims to present the results of a survey on the impact of internal governance, particularly ownership structure on financial performance. Using a multiple regression analysis on data collected from 190 Moroccan family-owned SMEs, we will study this relationship under different aspects, namely: the ownership of the manager, the concentration of capital and the nature of the shareholding. After conducting tests on the relationship between ownership structure variables and the financial performance of family SMEs, we were able to raise some results that underlie this research. The first is that managerial ownership has a positive effect on financial performance, which confirms the convergence of interests thesis supported by Jensen and Meckling. Similarly, we find the effective existence of a non-linear relationship between managerial ownership and financial performance. The second result is consistent with the neutrality thesis of Demsetz and Lehn who showed that ownership concentration has no effect on firm value. And as for the nature of the shareholding, a positive and nonsignificant association between the percentage of capital held by members outside the family and financial performance was clearly demonstrated.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

Abdellah Tajer. 2026. \u201cCorporate Governance and Financial Performance: The Family SMEs a Special Case\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 22 (GJHSS Volume 22 Issue E2): .

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Family SMEs corporate governance performance analysis.
Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: FOR Code: 150314, 149999
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v1.2

Issue date

March 30, 2022

Language

English

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This paper aims to present the results of a survey on the impact of internal governance, particularly ownership structure on financial performance. Using a multiple regression analysis on data collected from 190 Moroccan family-owned SMEs, we will study this relationship under different aspects, namely: the ownership of the manager, the concentration of capital and the nature of the shareholding. After conducting tests on the relationship between ownership structure variables and the financial performance of family SMEs, we were able to raise some results that underlie this research. The first is that managerial ownership has a positive effect on financial performance, which confirms the convergence of interests thesis supported by Jensen and Meckling. Similarly, we find the effective existence of a non-linear relationship between managerial ownership and financial performance. The second result is consistent with the neutrality thesis of Demsetz and Lehn who showed that ownership concentration has no effect on firm value. And as for the nature of the shareholding, a positive and nonsignificant association between the percentage of capital held by members outside the family and financial performance was clearly demonstrated.

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Corporate Governance and Financial Performance: The Family SMEs a Special Case

Abdellah Tajer
Abdellah Tajer
Sanae Benyaich
Sanae Benyaich
Hiba El Majhed
Hiba El Majhed
Sidi Mohamed Rigar
Sidi Mohamed Rigar

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