Corporate Governance of Family-run Companies

Author(s):  
Swati Deva

This chapter compares the corporate governance issues of family-run companies in Hong Kong and India. It highlights some of the challenges faced in such companies like balancing the interest of the owners with the stakeholders and managing the relationship between the professional managers and owners of the company. Examining the socio-economic environment in these two jurisdictions and highlighting the legal reforms they have undertaken, the chapter suggests that the challenge faced by such companies can be met through certain corporate governance policies, both at government and corporate levels.

2020 ◽  
Vol 63 (4) ◽  
pp. 449-475
Author(s):  
Boyce Yung ◽  
Philip Lawton

This article reports a study which uses a unique dataset compiled from listed companies in Hong Kong to demonstrate the relationship between corporate political connection with the corporate structure, ownership background and industry type of companies. The study shows that companies with political connection tend to be larger companies while Chinese family-controlled companies and more regulated companies have a higher level of political connection. Identifying the inadequacies of the existing theories in explaining corporate governance in Hong Kong, the article suggests adopting corporate political connection as a determinant of corporate governance in Hong Kong and elsewhere.


Author(s):  
Nurdan Gürkan ◽  
Ahmet Ferda Çakmak

The concept of entrepreneurial orientation, which emerges with the development of strategic management, refers to entrepreneurship orientations of businesses. The businesses need resources in other words organizational slack in order to develop their entrepreneurial trends. The organizational slack consists of three slack type. These slack types are available slack, recoverable slack and potential slack. The purpose of this study is to examine whether organizational slack in the businesses has an effect on entrepreneurial orientation. The relationship between organizational slack and entrepreneurial orientation was investigated through 20 companies that were traded in Borsa Istanbul Corporate Governance Index for 2010-2014 period using panel data analysis method. The results of the study indicate the existence of a statistically significant relationship between and the available slack and the recoverable slack with the entrepreneurial orientation in the businesses. According to findings; there was no statistically significant relationship between potential slack and entrepreneurial orientation.


2012 ◽  
Vol 16 (3) ◽  
pp. 332
Author(s):  
Whedy Prasetyo

Development of financial performance in the application of Good Corporate Governance and Corporate Social Responsibility which affects the values of honesty private individuals, in order to be able to run the accountability, value for money, fairness in financial management, transparency, control, and free of conflicts of interest (independence). The main concern in this study is focused on achieving value personal spirituality through the financial performance and capabilities of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) in moderating the relationship with the financial performance of value personal spirituality. This study is a descriptive verifikatif. The unit of analysis in this study was 15 companies in Indonesia with a policy that has been applied through the concept since January of 2008 until now, with the support of the annual report of the company, the company's financial statements, company reports to the disclosure of Good Corporate Governance and Corporate Social Responsibility in the annual report. Overall reports published successively during the years 2008-2011. The results of this study indicate financial performance affects the value of personal spirituality, and for variable GCG obtained results that could moderate the relationship of financial performance to the value of personal spirituality. But for the disclosure of CSR variables obtained results can’t moderate the relationship with the financial performance of personal spirituality.


Author(s):  
Fivi Anggraini

Earnings management is the moral hazard problem of manager that adses because of the conflict of interest between the manager as agent and the stakeholder and the owner as principal. The behavior of earnings management will immediately influence the reported earning. The aims of this research at examining the relationship of board and audit committe to earnings management. The samples of this research is all of companies member Corporate Governance Perception Index (CGPI) in the years of 2003-2006 which were listed in Jakarta Stock Exchange. The results of this study show that (1) the proportion of independent directors on the board had not significant relationship to earning management, (2) competence of independent directors on the board had not significant relationship to earning management, (3) the size of board had significant relationship to earning management, (4) the proportion of independent directors on the audit committe had not significant relationship to earning management, and (5) competence of members of the audit committe had significant relationship to earning management.


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