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PurposeThe purpose of this paper is to describe internal corporate governance mechanisms in family firms as well as conflicts that may arise among shareholders and family members in the absence of specific corporate governance mechanisms.Design/methodology/approachAfter presenting theoretical concepts, the authors study the case of Spanish family firm El Corte Inglés to understand some of the corporate governance difficulties the company has experienced over the past few years.FindingsThis case illustrates how corporate governance problems can arise because the right mechanisms have not been used, leading to conflicts among family members, valuation problems and power struggles.Practical implicationsThere is a need for family firms to employ suitable corporate governance mechanisms as governance complexity increases.Originality/valueThis study aims to contribute to the understanding of corporate governance problems among family members and their possible solutions.
Journal of Family Business Management – Emerald Publishing
Published: Nov 4, 2019
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