Addressing the family BUSINESS WEAK SPOT

Roberts, Jeff
March 2012
NZ Business;Mar2012, Vol. 26 Issue 2, p53
Trade Publication
The author reminds family-owned businesses in New Zealand about the wisdom in appointing independent directors to the board and its significance to addressing structural weakness relating to governance. Any board of directors play an important responsibility in the future of a business enterprise. A number of issues are neglected without a properly functioning board of directors. Non-executive directors provide advantages to a family business including access to skills, support and guidance.


Related Articles

  • Corporate Governance and Earnings Management in Family-Controlled Companies. Prencipe, Annalisa; Bar-Yosef, Sasson // Journal of Accounting, Auditing & Finance;Apr2011, Vol. 26 Issue 2, p199 

    The corporate governance literature advances the idea that certain aspects of a board of directors’ structure improve the monitoring of managerial decisions. Among these decisions are a manager’s policies about managing earnings. Prior studies have shown that earnings management in...

  • The independent family business board. Jaffe, Dennis T.; Davis, Sam // Family Business;Winter2010, Vol. 21 Issue 1, p54 

    The article discusses the role of independent board directors in a family enterprise. Among the tasks of a board are leadership oversight, provision of strategic direction and mediation. Several recruitment and reward practices to help enhance the independence of boards are determination of the...

  • Why Privately Held and Family-Owned Businesses Should Have Independent Boards of Directors. KAMPEL, CARL // Financial Executive;Nov2012, Vol. 28 Issue 9, p18 

    The author looks at governance of family-owned and privately held businesses, presenting a case for having an independent board of directors even though it is not legally required. He discusses several benefits independent directors can confer, including providing accountability and guidance to...

  • Board Composition: Balancing Family Influence in S&P 500 Firms. Anderson, Ronald C.; Reeb, David M. // Administrative Science Quarterly;Jun2004, Vol. 49 Issue 2, p209 

    We examine the mechanisms used to limit expropriation of firm wealth by large shareholders among S&P 500 firms with founding-family ownership. Consistent with agency theory, we find that the most valuable public firms are those in which independent directors balance family board representation....

  • Winning The Board Game. Hutcheson, James Olan // Financial Planning;Jul99, Vol. 29 Issue 7, p99 

    Points out that an outside board can provide a lifeline to the objectivity and expertise small family businesses need to succeed. Benefits of an outside board; Consequences of creating an outside and independent board; Reasons for the failure of some boards.

  • Director Independence: A Focus on Board Tenure. Romanchek, Bob; Keckley, Jeff // NACD Directorship;Jan/Feb2014, Vol. 40 Issue 1, p75 

    The authors discuss the issue of associating corporate director independence with tenure. They explain that although there are no rules in the U.S. linking a director's independence with tenure, other countries have established rules associating independence with the length of time a director...

  • Does Corporate Governance Influence Earnings Management in Latin American Markets? Sáenz González, Jesus; García-Meca, Emma // Journal of Business Ethics;May2014, Vol. 121 Issue 3, p419 

    Although US and European research has documented improvement in earnings quality associated with corporate governance characteristics, the situation in Latin America is questionable, given the business environment in which firms operate, which is characterized by controlling family ownership and...

  • First among equals. Rock, Caro U. // Family Business;Summer2008, Vol. 19 Issue 3, p6 

    The author reflects on the value of outside board of directors in a family business. She contradicts the notion of losing control of family owners under an independent board saying that directors can be voted out during major conflicts. He asserts that the family still has the final say in the...

  • Making the right choice for a family successor. Jaffe, Dennis T. // Family Business;Summer2008, Vol. 19 Issue 3, p38 

    The article discusses considerations that family business leaders should make in choosing a family successor. A family business leader must be aware of the changing business environment that the next generation leader will manage. He must also consider the new role he must take if he is to give...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics