Corporate governance practices in family owned businesses in nepal

Abstract

Corporate governance plays a crucial role in fostering public trust and confidence in family-owned businesses, which is vital for the effective functioning of the sector and the broader economy. This study explores how corporate governance influences the perceived performance of these businesses, focusing on five key governance factors: Transparency, Accountability, Responsibility, Independence, and Fairness. A qualitative approach was employed, with data collected through a self-administered survey distributed to a sample of 100 small and medium-sized family-owned enterprises (SMEs) using purposive sampling. The findings revealed that Transparency had the highest mean indicating its significant role in influencing perceived performance.Multiple regression analysis revealed that Transparency, Responsibility, Independence, and Fairness were significant predictors of perceived performance, while Accountability was not significantly related to perceived performance, as its p-value exceeded 0.05. These results underscore the importance of adopting strong corporate governance practices, particularly in the areas of Transparency and Independence, to enhance the performance of family-owned businesses. This research contributes valuable insights into the significance of corporate governance, especially within developing economies, and provides recommendations for policymakers to prioritize governance reforms focusing on Transparency, Independence, and Fairness. Practitioners are encouraged to integrate these dimensions into their organizational practices to boost business success. Keywords: Corporate Governance, Family-Owned Businesses, Perceived Performance, Transparency, Accountability, Responsibility, Independence, Fairness,