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Do Families Shape Corporate Board Structure in Emerging Economies?

  • Mohammad Badrul Muttakin
  • Arifur Khan
  • Nava Subramaniam
Chapter
Part of the CSR, Sustainability, Ethics & Governance book series (CSEG)

Abstract

This study investigates whether there are significant differences in corporate board structure between family and non-family firms using listed companies in Bangladesh where family firms are the most dominant form of public companies. The results of this study suggest that family firms in Bangladesh adopt a distinctly different board structure from non-family firms. In particular, this study finds that family firms have a lower proportion of independent directors and foreign directors than non-family firms. Further, family firms have smaller boards than non-family firms. However, family firms are likely to have more CEO duality and female directors than their non-family counterparts. The findings of this study contribute to extant research on corporate board structure. The overall findings of this study imply that families of Bangladeshi firms have a different board structure compared to non-family firms, and the structure appears to promote a close locus of control for families that facilitates family dominance to prevail.

Keywords

Corporate Governance Firm Size Family Firm Independent Director Minority Shareholder 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  • Mohammad Badrul Muttakin
    • 1
  • Arifur Khan
    • 2
  • Nava Subramaniam
    • 1
  1. 1.Deakin UniversityBurwoodAustralia
  2. 2.School of Accounting, Economics and FinanceDeakin UniversityBurwoodAustralia

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