scholarly journals PRÁTICAS DE GOVERNANÇA CORPORATIVA EM EMPRESA FAMILIAR DE CAPITAL FECHADO: UM ESTUDO DE CASO

2007 ◽  
Vol 12 (2) ◽  
pp. 03 ◽  
Author(s):  
Fabio Matuoka Mizumoto ◽  
Claudio Pinheiro Machado Filho
Keyword(s):  
Corporate Governance ◽  
Family Ownership ◽  
Private Companies ◽  
Corporate Governance Mechanisms ◽  
General Rules ◽  
The Family ◽  
Governance Practices ◽  
The Empirical Analysis ◽  
Management Council

This paper analyses corporate governance practices adopted by family-owned business to identify its influence on the management model and on the family and business relationship. The corporate governance mechanisms are originally established to public held companies, but those practices may also minimize agency problems faced by family-owned companies once it establishes rules to relationships among family, ownership and management. It is notable the importance of family owned firms on national private companies. Many challenges faced by family companies are recurrent, but there are no general rules and solutions. Therefore, the empirical analysis was conducted on a case study about the challenges and benefits from practices of corporate governance at Grupo Orsa Company. It was investigated the hole of Board of Directors, Family Council, Management Council, considered integrative structures to the model of family ? ownership ? management sub-systems. Key words: Family business. Corporate governance. Management

scholarly journals Effect of corporate governance on expropriation practices with family ownership as moderation variable

2021 ◽  
Vol 8 (3) ◽  
Author(s):  
Gladys Bella Novenna Rettob ◽  
Imam Subekti ◽  
Endang Mardiati
Keyword(s):  
Corporate Governance ◽  
Sampling Method ◽  
Stock Exchange ◽  
Research Data ◽  
Family Ownership ◽  
Control Rights ◽  
Controlling Shareholders ◽  
The Family ◽  
Governance Practices ◽  
Cash Flow Rights

The practice of expropriation is one of the accounting frauds committed by controlling shareholders because of their control rights that exceed cash flow rights. This study aims to examine and analyze the effect of corporate governance on the practice of expropriation and the existence of family ownership as a moderating variable. This research was conducted at companies in all sectors of the Indonesia Stock Exchange. Based on the purposive sampling method, the sample of this study was 78 companies with 312 observations. The research data were analyzed using multiple regression analysis. The results of this study indicate that the practice of expropriation in Indonesia can be minimized by implementing adequate corporate governance. The results of this study also prove that companies whose shareholding structures are dominated by the family will maintain control in the company through their management so that they have an impact on limiting governance practices in reducing expropriation practices.

scholarly journals Measuring Corporate Governance Using Analytic Hierarchy Process (AHP): Case of Algerian Companies

2019 ◽  
Vol 3 (1) ◽  
pp. 1-24
Author(s):  
Hamoudi HADJ-SAHRAOUI ◽  
Rima Chiboub
Keyword(s):  
Corporate Governance ◽  
Analytic Hierarchy Process ◽  
Financial Performance ◽  
Empirical Studies ◽  
Analytic Hierarchy ◽  
Private Companies ◽  
Corporate Governance Mechanisms ◽  
Property Type ◽  
Governance Systems ◽  
Hierarchy Process

During the last decades, and according to its effect on financial performance, the measuring of corporate governance systems has been the subject of many empirical studies. In this side and in order to arrange the Algerian companies, the Analytic Hierarchy Process (AHP), which is concerning as a multi-criteria decision-making method, has been used to analyze the data of 16 companies during the period 2010-2013. The findings are as follows: (1) in contrast to the property type which determines the financial performance, the relationships between corporate governance mechanisms and financial performance are weak and sometimes negative (2) according to AHP results, the corporate governance systems of private companies are the best.

scholarly journals Family companies and the costs of governance mechanisms: A discriminant analysis for a sample of Algerian companies

2018 ◽  
Vol 2 (1) ◽  
pp. 51-71
Author(s):  
Mohamed Cherif BENZOUAI
Keyword(s):  
Corporate Governance ◽  
Discriminant Analysis ◽  
Discriminant Function ◽  
Lower Cost ◽  
Agency Problem ◽  
Governance Structure ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
The Family

This paper aims at shedding light on the importance of corporate governance mechanisms costs when considering the decision of adoption of those mechanisms by companies, by relying on the discriminant analysis of a sample of 112 Algerian unlisted companies. The special nature of the agency problem in family companies allows it to adopt a different and lower cost governance structure than other companies. The study found that the variables that reflect corporate governance mechanisms have a significant effect in the discriminant function between the family companies and the rest of the companies.

Governance Practices and CEO Hubris

2021 ◽  
pp. 161-182
Author(s):  
Paola Ferretti ◽  
Cristina Gonnella
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Internal Control ◽  
Financial Distress ◽  
Good Governance ◽  
Power Dynamics ◽  
Control Mechanisms ◽  
Managerial Entrenchment ◽  
Governance Practices

This chapter analyzes the connection between CEO hubris and corporate governance contingencies, including a case study of an Italian bank for which the state of financial distress shall be linkable also to bad governance. The main objective is to verify whether, in presence of hubristic CEO, the internal control mechanisms, set to ensure the board vigilance and limit the overconfidence of the leader, are implemented, and if so, whether such mechanisms, even when formally respected, may be not so appropriate to guarantee a good governance. Particularly, the existence of a CEO hubris could neutralize their positive expected balancing effects on the power dynamics between CEO and board, such as to give prevalence to substance over form. Therefore, it may occur that some governance mechanisms (e.g., independence, non-duality), even if formally implemented, are unable to stem the managerial entrenchment of the CEO, who succeeds in enhancing immoderately his substantial power in the decision-making process.

scholarly journals Corporate governance practices in brazilian family construction companies

DYNA ◽  
2019 ◽  
Vol 86 (209) ◽  
pp. 281-288
Author(s):  
Rayza Mirelle Francelino Nicácio ◽  
João Alberto Neves dos Santos ◽  
Carlos Alberto Pereira Soares ◽  
Wainer Da Silveira e Silva
Keyword(s):  
Corporate Governance ◽  
Construction Industry ◽  
Family Influence ◽  
Construction Companies ◽  
Goods And Services ◽  
The Family ◽  
Governance Practices ◽  
Governance Models

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.

Governance of Financial Institutions

2018 ◽  
Author(s):  
Guler Aras
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Capital Markets ◽  
Financial Services ◽  
Good Governance ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The 2008 Financial Crisis ◽  
Sustainable Economic Growth

Corporate governance is a central issue in business and economics. However, governance in financial institutions is more complicated than in other fields because of the nature of financial services and instruments. Financial organizations are similar to other businesses in terms of their purposes of establishment, but confidence in management and complex risk structures are more important in financial organizations than in other businesses. In financial institutions, there are various areas in which problems arise that are related to corporate governance, including the agency problem and stakeholder protection. The importance of good governance for sound performance of financial institutions was reconfirmed during the 2008 financial crisis, raising the need to understand the agency problems and the efficiency of various corporate governance mechanisms in mitigating them. International organizations, such as the Organisation for Economic Co-operation and Development, the Basel Committee, the International Finance Corporation, and the International Organization of Securities Commissions, have been working with regulators and policy makers to improve corporate governance practices both in nonfinancial and financial institutions. Corporate governance, especially in financial institutions, is essential in guaranteeing a sound financial system, capital markets, and sustainable economic growth. Governance weaknesses at financial institutions can result in the transmission of problems across the finance sector and the economy. Consequently, the effectiveness of governance mechanisms of financial institutions and capital markets after financial crises had significant importance in a period that witnessed an intensive discussion of corporate governance issues with new regulations and the related academic works.

Family business governance: what’s wrong? What’s right? What’s next?

2019 ◽  
Vol 9 (1) ◽  
pp. 1-23
Author(s):  
Irfan Saleem ◽  
Faiza Khalid ◽  
Muhammad Nadeem
Keyword(s):  
Family Business ◽  
Generation X ◽  
Family Firm ◽  
Board Structure ◽  
Content Type ◽  
Academic Level ◽  
The Family ◽  
Governance Practices

Learning outcomes This case study can help the reader to understand how to build an effective board for family business, and why evolving board structure can help family firm to sustain for a longer period in Market. Reader can also learn about role of independent director, CEO's Succession process and ways to deal with duality issue that family owned enterprise may face during a transition from generation X to Y. Case overview/synopsis This teaching case study describes various decision-making situations using example of a Pakistani family firm and entrepreneurs who started the business few decades back in France. This partially disguised case is based on actual events. The data are collected based on discussions with family business owners and minutes of meetings. The objective of study is to make sense of the family business theories e.g. socio emotional wealth stakeholder and agency. Case readers can also learn about the family’s business governance practices using diverse scenarios presented in this case. Complexity academic level This study is suitable for graduate and undergraduate studies. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 7: Management science.

Corporate governance in Kenya's public universities

2014 ◽  
Vol 6 (2) ◽  
pp. 342-357 ◽  
Author(s):  
Benjamin Mwanzia Mulili
Keyword(s):  
Corporate Governance ◽  
Public Universities ◽  
Qualitative Data ◽  
Resistance To Change ◽  
Government Support ◽  
Content Type ◽  
Governance Practices ◽  
Sub Saharan ◽  
Practical Implications

Purpose – The purpose of this paper is to explore the corporate governance practices adopted by public universities in Kenya, itself a developing country. Corporate governance practices in Africa, especially the sub-Saharan part, are weak and limited research has been done in this area. Design/methodology/approach – The researcher adopted the realism paradigm and relied on qualitative data obtained from five case study organizations. A total of 15 informants were interviewed. The data were recorded, transcribed and subjected to content analysis using the NVIVO software. Findings – The researcher established that the governance of the said institutions is constrained by numerous challenges that include, among many others, large student numbers, overstretched facilities, insufficient government support, inadequate induction of new staff, resistance to change and cultures that support impunity on the part of some non-performing employees. Practical implications – This research recommends several strategies that can be used to improve the governance of the said institutions and, by extension, that of similar institutions in developing countries. Originality/value – The study provides empirical evidence to support the proposition that different corporate governance theories, such as the stakeholders theory, political theory and resource dependency theory, can be used simultaneously by the same firm. On this basis, the research suggests the adoption of a combined theory of corporate governance.

scholarly journals Agency costs, ownership structure and corporate governance mechanisms: A case study in New Zealand unlisted small companies

2011 ◽  
Vol 6 (3) ◽  
Author(s):  
Nirosha Hewa Wellalage ◽  
Stuart Locke
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Small Businesses ◽  
Diagnostic Tests ◽  
Agency Costs ◽  
Small Companies ◽  
Dynamic Panel ◽  
Corporate Governance Mechanisms ◽  
And Performance

This study investigates the linkage between agency costs, ownership structure and corporate governance in small business. Eleven years of data for 100 unlisted small businesses, are collected and 1099 observations are analysed using as dynamic panel GMM estimation. Various diagnostic tests are utilised to check for stationary and convergence of variables. The results indicate that ownership concentration has the most significant governance effect and also has the largest impact on corporate governance. Moreover, this study finds U-shape relationship between internal ownership and performance, which under that agency proxy. Agency costs vary with leverage the life of the business and with its size.

scholarly journals The financial impacts of board mechanisms on performance: The case of listed Moroccan banks

2021 ◽  
Vol 3 (2) ◽  
pp. 93-113
Author(s):  
Issam El Idrissi ◽  
◽  
Youssef Alami ◽  
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Fixed Effects ◽  
Audit Committee ◽  
Negative Impact ◽  
Governance Mechanisms ◽  
Return On Equity ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The Impact

Abstract Purpose: The present study examines the impact of corporate governance mechanisms on listed Moroccan banks' financial performance. Research methodology: This study investigates the relationship between listed banks' governance mechanisms and financial performance in the CSE for six years between 2014-2019. This study employs three performance measures, return on assets, return on equity, and Tobin's Q, to determine bank performance. This research uses the GMM EGLS approach to analyze data. In the first phase of this empirical research, we did use OLS, Fixed Effects, and Radom Effects regressions to show their inefficiency. Results: Our results portray that most board mechanisms have a negative impact on financial performance. In comparison, the audit committee and nomination & remuneration committee have a positive effect on financial performance. Limitations: Many qualitative and quantitative factors could influence financial performance and not only the used variables in this paper. Contribution: This research shows that the dynamic connection between corporate governance and financial performance is robust in the Moroccan banking context. Also, our study has important implications for establishing good corporate governance practices in emerging economies.

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