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Only 31% of Valencian family firms have a Board of Directors, compared to 44% of non-family firms

The GECE Observatory examines the differences in the organizational structure of Valencian firms

According to the new issue of the GECE Observatory collection ‘Keys to Competitiveness’, only 31% of Valencian family-owned firms have a board of directors, compared to 44% of non-family firms. In general, firms in the Valencian Community rely less on this type of corporate governance in comparison to Spanish firms where on average 36.6% of family-run businesses and 53.8% of non-family firms have a board of directors.

The Corporate Governance, Strategy and Competitiveness Observatory  (GECE), created by Bankia, in collaboration with the Ivie, has published the second issue of ‘Keys to competitiveness’, a collection of short information notes which in this case analyzes the differences in the organizational structure of family and non-family Valencian firms.

According to the Observatory, most Valencian family firms are companies with a sole-administrator. However, family firms that are more competitive are governed by a board of directors.

Specifically, 38% of Valencian family firms classified in the Observatory as ‘strongly’ competitive have a board of directors. Whereas, of the family firms classified as ‘weak’ in terms of overall competitiveness, only 23.6% have a board of directors.