Open AccessCorporate governance in family run business – a Malaysian case study
Author(s) -
Cyril Hilaris A L M Ponnu,
C.K. Lee,
Geron Tan,
Teik Heong Khor,
Adelyn Leong
Publication year - 2009
Publication title -
corporate ownership and control
Language(s) - English
Resource type - Journals
eISSN - 1810-0368
pISSN - 1727-9232
DOI - 10.22495/cocv6i4p13
Subject(s) - corporate governance , business , accounting , shareholder , independence (probability theory) , audit , transparency (behavior) , market capitalization , control (management) , capitalization , finance , economics , stock market , management , paleontology , linguistics , statistics , philosophy , mathematics , horse , political science , law , biology
This paper addresses the debate on family run business and corporate governance before and after the Asian Financial Crisis in 1997. As there are only few studies on the corporate governance of family businesses in Malaysia, this paper aims to provide a broad view of the corporate governance practises of family run companies in Malaysia. The majority of family-run companies in Malaysia are operated by ethnic Chinese families in Malaysia. To understand the practices of corporate governance in these companies, this study selected 3 of the top 10 family run companies by market capitalization in Malaysia. This paper discusses the issues and problems related to family run businesses in the light of the separation of ownership and control, lack of board independence and protection of minority shareholders, lack of independence of external auditors, lack of transparency and disclosure as well as managerial entrenchment.