ABSTRACT
A well-functioning board of directors is a critical source for family and business and this relationship emerges in particular inside the board of directors. This chapter analyzes the impact of board composition in listed Italian family firms on performance. Corporate governance has a relevant impact on business performance. The relevance of board composition is in its perceived role in enhancing the firm's performance. The primary function of boards of directors is to monitor the managers' actions and decisions, in order to protect the interests of owners from managerial opportunism. The chapter analyses the theoretical background about family firms and corporate governance, particularly referring to the family firm. In particular analyzing both economic and financial ratio it emerges how the family members influence positively the firm performance and how the independent members are indirectly correlated with the performance.
