Corporate governance practices in brazilian family construction companies

Abstract

InBrazil, family construction companies provide a significant share of goods and services in the construction industry. To protect themselves against fraud, crises and problems inherent to family organizations, these corporations need to implement at least basic corporate governance recommendations. This study evaluates the practices suggested by the Brazilian Institute of Corporate Governance (IBGC) based on a survey of 33 organizations. Our results indicate that construction companies in the country start their governance models by standardizing and professionalizing their business; however, they only start considering the family influence in later stages. The average scores obtained for the recommendations investigated suggest poor implementation of corporate governance practices in Brazilian family construction companies.