Abstract—Family owned businesses are the backbone of many economies around the world. Increasing growth and globalization has brought many challenges for family businesses.The way you deal with them can mean the difference between success and failure. By adopting sound corporate governance systems, many of these challenges can be tackled. In this paper, we describe the importance of corporate governance in family owned business. This study examines the theoretical background of corporate governance in family businesses in Pakistan. Introducing the concept of good corporate governance is vital for the continuity and sustainability of the family owned businesses that support economic growth. In addition to board of directors, more non-executive and independent directors, board committees, bylaws and company codes should be introduce in a company. Corporate governance will ensure that FOBs are transparent enough to satisfy various stakeholders such as suppliers, customers, and creditors.
Index Terms—Board of directors, corporate governance, family owned businesses (FOBs), Pakistan
M. Awais Gulzar is a doctoral candidate at School of Management, Huazhong University of Science and Technology, Wuhan (Hubei), P. R. China.(Phone:0086-1343-716-6338; e-mail: firstname.lastname@example.org).
Zongjun Wang is Professor of Finance and Enterprise Strategy at School of Management Huazhong University of Science and Technology, Wuhan,(Hubei), P. R. China. (e-mail:email@example.com)
Cite: M. Awais Gulzar, Zongjun Wang, " Corporate Governance and Non-Listed Family Owned Businesses: An Evidence from Pakistan," International Journal of Innovation, Management and Technology vol. 1, no. 2, pp. 124-129, 2010.