The Role of the Family in a Concentrated Shareholding Structure and Good Governance in the Family Business

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Konnut Pugatekaew
Yanin Tangpinyoputtikhun
Nitiphong Songsrirote
Suwan Wangcharoendate


          The objective of this research was to study the concentration of family shareholding and the relationship between the Chairperson and Chief Executive Officer and the composition of the Board of Directors following the principle of good corporate governance for listed companies in 2012. Using behavioral concepts to describe the motivation of a family business. The data was collected from companies listed on the Stock Exchange of Thailand and the MAI. Stock Exchange between 2014 and 2018. Multiple regression and logistic regression analysis were used in hypothesis testing. The result presented that the concentrated shareholding in a family group since 25% and the executive was representative of the family group. There is a possibility that the Chairperson and the Chief Executive Officer, with statistical significance have a relationship. So, epitomizing the interdependence of knowledge and sharing of expertise to benefit the business. However, relating to the Board’s composition, a significant number of audit committees reveal that the family gives importance to monitoring corporate activities to maintain long term wealth, including managing the good reputation and image of the business.

          The results of this research are beneficial to investors for decisions making in investment, as well as the capital market supervisory authority who may review governance practices for concentrated family ownership structure.


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