Corporate governance characteristics, particularly the legal protection of minority investors and ownership structure, can influence company valuation and performance. This typical agency problem, affecting Italian and European companies, may lead to the expropriation of minority shareholders by the controlling owner, especially if legal protection is insufficient. 
On the other hand, concentrated ownership and family control can have a positive effect on market valuation and operational performance, as increased cash flow rights for controlling shareholders improve the alignment of interests between controlling owners and minority shareholders, reducing entrenchment effects. 
Research in this area examines the characteristics of corporate governance in Italian and European companies and identifies its effect on the value and performance of firms.