President interlocking, family firms and performance during turbulent times: Evidence from Latin America

  • Karen Watkins-Fassler Centro de Investigación e Inteligencia Económica, Universidad Popular Autónoma del Estado de Puebla, 17 Sur 901, Barrio de Santiago, C.P. 72410 Puebla, Mexico
  • Virginia Fernández-Pérez Departamento de Organización de Empresas, Universidad de Granada, Campus de Cartuja s/n, 18071 Granada, Spain
  • Lázaro Rodríguez-Ariza Departamento de Organización de Empresas, Universidad de Granada, Campus de Cartuja s/n, 18071 Granada, Spain
Keywords: Empresas familiares, Interlocking de presidentes, Latinoamérica, Resultados, Incertidumbre


n Latin America, company ownership is typically concentrated in the hands of controlling families, who build powerful business groups which facilitate interlocking practices. The purpose of this study is to examine how President interlocking relates with financial performance in Latin American firms, under uncertainty circumstances. Using regression analysis (panel least squares), the association between return on assets and President interlocking during turbulent times is analyzed. For the latter, annual data (2009–2010) from non-financial publicly traded companies in Chile (243 firms) and Mexico (89 firms) is employed. It is documented that President interlocking in Latin American firms is positively associated with financial performance. However, this effect is higher in Chile than in Mexico, where minority shareholders and other stakeholders are better protected against expropriation. This study increases the understanding of the strengths of President interlocks in stormy times, by introducing the Latin American context.


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How to Cite
Watkins-Fassler, K., Fernández-Pérez, V., & Rodríguez-Ariza, L. (2016). President interlocking, family firms and performance during turbulent times: Evidence from Latin America. European Journal of Family Business, 6(2).
Research Paper