Family governance in family firms in Asia: An exploratory study

• Main Authors: Wee Liang TAN, KOH, Annie
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: Asian Studies; Entrepreneurial and Small Business Operations
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5016
• Institution: Singapore Management University

Whenthe Asian financial crisis happened in 1997 – 1998, the lack of good corporategovernance of family-run businesses was identified as a contributing factor.Specifically, this may be particularly linked to the relationship-basedcorporate governance systems present in Asian family firms that are designed todisclose less information (Tsui & Shieh, 2002, 2004). Given theplethora of papers highlighting the lack of good corporate governance in Asianfamily firms and with close to twentyyears have passed since the Asian Financial crisis, it is timely to examine governancein Asian family firms. Is the prior report on the lack of good governance nolonger true? Is it a myth? How much progress has been made since then? Theauthors report a study conducted by the Business Families Institute (BFI @ SMU).The exploratory study shows that Asian family firms have introduced outsideboard/ advisory panel members. Furthermore, there is some distinction betweencorporate and family governance. The paper begins with a review of therelevant literature, an account of the research methodology before adescription of the findings and a discussion of the findings. The paperconcludes with recommendations for future research and the implications forAsian family firms.