Stewardship Theory of Corporate Governance and Value System: The Case of a Family-owned Business Group in India

Q3 Business, Management and Accounting

Indian Journal of Corporate Governance Pub Date : 2018-06-01 DOI:10.1177/0974686218776026

S. Subramanian

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引用次数: 26

Abstract

Abstract Stewardship theory of corporate governance is a normative alternative to agency theory. This article argues that the stewardship behaviour of managers results in exemplary corporate governance practices when the espoused values of the firm are aligned with the enacted values. The case study method is used to prove this argument by studying corporate governance practices in a family-owned business group in India. The Murugappa Group is a 100-year-old family-owned business group, known for their ethical practices and currently managed by the fourth-generation family members, without undergoing any split. The espoused as well enacted values of the group are studied and corporate governance practices of the group firms analysed in this article. The article focuses on the governance structure of the group, its succession planning practices and the ownership structure. The analysis indicates that aligning the enacted values with the espoused value helped the group to adapt itself to the changing external economic environment and continue creating shareholder value, the essence of corporate governance.

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公司治理与价值体系的管理理论:以印度一家家族企业集团为例

公司治理的管理理论是替代代理理论的规范性理论。本文认为，当公司所信奉的价值观与制定的价值观相一致时，管理者的管理行为会导致模范的公司治理实践。本文通过对印度一家家族企业集团的公司治理实践进行研究，运用案例研究法来证明这一论点。Murugappa集团是一个拥有百年历史的家族企业集团，以其道德规范而闻名，目前由第四代家族成员管理，没有发生任何分裂。本文研究了集团所信奉的和制定的价值观，并分析了集团公司的公司治理实践。本文重点研究了该集团的治理结构、继任计划实践和股权结构。分析表明，将制定的价值与拥护的价值相一致，有助于集团适应不断变化的外部经济环境，并继续创造股东价值，这是公司治理的本质。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Indian Journal of Corporate Governance Business, Management and Accounting-Business and International Management

CiteScore

2.00

自引率

0.00%

发文量

期刊介绍： Indian Journal of Corporate Governance is a bi-annual refereed journal that provides a forum for discussions and exchanging views on a wide range of corporate governance issues ranging from board practices, independent directors, whistle blower policies and shareholder activism on one hand to media’s role in corporate governance, corporate social responsibility and sustainability reporting on the other. It comprises of research articles, concept papers, case studies and reports providing a blend of theory and practices of corporate governance globally to cater to the interests of practitioners, academics, researchers and policy makers.