Essays on Corporate Governance is Important for Family Businesses and Large Corporations Literature review

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The paper "Corporate Governance is Important for Family Businesses and Large Corporations" is an outstanding example of a business literature review. Corporate governance can be described as the processes and structures for the control and direction of businesses as well as the relationships amongst the stakeholders such as minority shareholders, the board of directors, the management, and controlling shareholders. Corporate governance can also be described as a blend of the external mechanisms (legal protections, the capital market, managerial labour market, and takeover) and internal mechanisms (ownership and board of directors). Given that good corporate governance leads to the sustainable development of the economy through companies’ performance improvement, it is very important that companies espouse good structures for corporate governance so as to grow.

Normally, family businesses are overlooked types of business ownership in the modern-day business world, yet they account for the majority of the businesses. Therefore, families own considerable businesses share and could influence crucial decisions in the contemporary business world. Still, the research of corporate governance with regard to family business has been neglected for many years.

Given that family businesses have become a crucial part of all economies and play an important part in promoting the economy of the country, they still face a number of pressures and challenges as any large corporation. The objective of this paper is to demonstrate that corporate governance is important for family businesses as well as large corporations and also to compare and contrast the corporate governance characteristics of large companies and family businesses. Contemporary International Context of the Issue Family businesses, according to Yasser (2011), range from Small- and Medium-sized companies and Cluster Companies to large companies operating in different countries as well as industries.

There are many recognized family businesses across the globe: Michelin, Carrefour Group, L’ Oreal, and LVMH (France); FiatGroup, Benetton, and Salvatore Ferragamo (Italy); LG Group, Hyundai Motor, Samsung (South Korea); Siemens and BMW (Germany); Wal-Mart Stores and Ford Motors Co (United States); and many others (Yasser, 2011).  

References

Abdullah, A. & Page, M., 2009. Corporate Governance and Corporate Performance: UK FTSE 350 Companies. Edinburgh: he Institute of Chartered Accountants of Scotland.

Abdullah, H. & Valentine, B., 2009. Fundamental and Ethics Theories of Corporate Governance. Middle Eastern Finance and Economics, vol. 4, pp.88-96.

Abor, J. & Adjasi, C.K.D., 2007. Corporate governance and the small and medium enterprises sector: theory and implications. Corporate Governance, vol. 7, no. 2, pp.111-22.

Akinkoye, E.Y. & Olasanmi, O.O., 2014. Corporate governance practice and level of compliance among firms in Nigeria: Industry analysis. Journal of Business and Retail Management Research , vol. 9, no. 1, pp.13-25.

Brenes, E.R., Madrigal, K. & Requena, B., 2011. Corporate governance and family business performance. Journal of Business Research, vol. 64, no. 3, pp.280-85.

Dar, L.A., Naseem, M.A., Rehman, R.U. & Niazi, G.S.K., 2011. Corporate Governance and Firm Performance a Case Study of Pakistan Oil and Gas Companies Listed in Karachi Stock Exchange. Global Journal of Management and Business Research, vol. 11, no. 9, pp.1-11.

Ediriweera, A., Armstrong, A. & Heenetigala, K., 2015. Governance in Family Business: A Literature Review. Journal of Law and Governance, vol. 10, no. 2, pp.36-46.

Gulzar, M.A. & Wang, Z., 2010. Corporate Governance and Non-Listed Family Owned Businesses: An Evidence from Pakistan. International Journal of Innovation, Management and Technology, vol. 1, no. 2, pp.124-29.

Hirigoyen, G. & Poulain-Rehm, T., 2014. The Corporate Social Responsibility of Family Businesses: An International Approach. International Journal of Financial Studies, vol. 2, pp.240–65.

Klein, S.B., 2011. Corporate Governance, family business complexity and succession. Research Paper. Vallendar, Germany: WHU Otto Beisheim School of Management.

Lashgari, M., 2004. Corporate Governance: Theory and Practice. The Journal of American Academy of Business, vol. 1, pp.46-51.

Ljubojevic, C., Ljubojevic, G. & Maksimovic, N., 2013. Corporate Governance and Competitive Capability in Serbian Companies. In Proceedings of the 14th Management International Conference. Koper, Slovenia, 2013.

Michelberger, K., 2016. Corporate Governance Effects On Firm Performance: A Literature Review. Regional Formation and Development Studies , vol. 20, no. 3, pp.84-95.

Mohamad, S., 2004. The Importance of Effective Corporate Governance. SSRN Electronic Journal, vol. 1, pp.1-10.

Peters, G.T. & Bagshaw, K.B., 2014. Corporate Governance Mechanisms and Financial Performance of Listed Firms in Nigeria: A Content Analysis. Global Journal of Contemporary Research in Accounting, Auditing and Business Ethics, vol. 1, no. 2, pp.103-28.

Sarbah, A., Quaye, I. & Affum-Ose, E., 2016. Corporate Governance in Family Businesses: The Role of the Non-Executive and Independent Directors. Open Journal of Business and Management, vol. 4, pp. 14-35.

Sarbah, A. & Xiao, W., 2015. Good Corporate Governance Structures: A Must for Family Businesses. Open Journal of Business and Management, vol. 3, pp.40-57.

Yasser, Q.R., 2011. Challenges in Corporate Governance – A Family Controlled Business Prospective. International Journal of Innovation, Management and Technology, vol. 2, no. 1, pp.73-76.

Yasser, Q.R., 2011. Corporate Governance and Performance (A Case Study for Pakistani Communication Sector). International Journal of Trade, Economics and Finance, vol. 2, no. 3, pp.204-11.

Yusoff, W.F.W. & Alhaji, I.A., 2012. Insight of Corporate Governance Theories. Journal of Business & Management, vol. 1, no. 1, pp.52-63.

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