Chapter 11: Knowledge on Boards of Directors of Family Firms: From Developed Economies to Latin America

The board of directors of a firm is a governing body exercising key top-level decisions. Due to the involvement of the controlling families, boards of directors of family firms have been found to behave differently than those of other organizations. Besides family control, national and/or regional contexts have been suggested to influence how companies are governed. Boards of directors of family firms have been studied mostly in developed regions and knowledge from developing regions such as Latin America is scarce. This chapter summarizes the main findings about boards of directors in family firms and compares this research with our knowledge from Latin America. It discusses the different challenges and opportunities that owners of family firms and boards of directors face in the Latin American context. Finally, it suggests that research on boards of directors of family firms in Latin America has a very promising future as it still has to validate and/or contextualize findings in developed regions, overcome some theoretical and empirical limitations, explore some salient characteristics related to the institutional context in depth, and provide recommendations linking board characteristics and firm performance.