The Corporate Governance in Selected Family Business
Keywords:
Corporate governance, Family business, Ownership structure, Board of directors, Board compositionAbstract
This study aims to examine whether there are differences in performance between family and non-family firms, taking into account the peculiarities of the Indian corporate governance system. We propose an approach to compare and contrast enterprises with distinct ownership forms, characterized practices variable features. We also study the consequences of concentrated ownership on the performance of businesses. We discover that family-owned businesses employ significantly various corporate governance arrangements from non-family companies. There are indications that these disparities eventually affect firm performance. This Research presents that ownership concentration interacts with multiple control mechanisms, including debt or the structure of the labor force. The findings of a global model support the previously predicted evidence of developing markets that show a much superior improvement as the Indian market concentrated ownership increases. In addition, we discovered that the link between ownership concentration, board composition, debt, or performance differs among family holding businesses or firms with a show under arrangements and incentivized activities to maximize profits following their interests. In companies with a distributed ownership structure, different governance systems are required to oversee performance instance, construction, namely debt or members, has a favorable impact on company performance.
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