Corporate Governance of Multinational Companies- A Case of Indian Company –Bishwa Raj Kandel (Kaetsu University)
Multi-National Companies (MNCs) are defined as privately owned company which has facilities for
production of goods and service, and other assets in one or more than one country apart from its homecountry. Due to the presence on emerging market and huge consumer base, south Asia has been an
attraction for almost all MNCs. India, Pakistan, Bangladesh, Srilanka and Nepal are all developing nationand is home to around 1.7 billion people. This fact makes this sub-continent a lucrative market for
MNCs.
The major target of the research is to find out the impact of shareholding pattern and family controlled
system of Indian multinational companies and the corporate governance of listed indian companies. And,
it also aims to find out the effects on various investors` and business partners` profit due to theshareholding patterns & family controlled management system.
The research about the multinational companies and family business can be found to some extent in themany developed countries. Specially, such type of research has been performed in countries like Japan,
Korea and Germany. But, the researches on the Indian family dominated multinational companies arevery few in number. Although, there are numbers of researches on the Indian corporate from the view
point of social and historical aspects, it is difficult to say about the research of Indian multinational
companies from the view point of managerial aspect like corporate governance and so on. It is being
known that the management practice of family business is better than others. According to Prof.
Austoranchan of Tennessee Prefecture University (USA), family business covers 89% of whole
American corporate and contributes more than 60% of GDP as well as employment of the country.
Furthermore, Global Entrepreneurship Monitor (GEM) survey report has clearly indicated that 75% inaverage of total business is being covered by family business in the context of other countries too. And,
about 35% of large sized corporate is covered by family business. So, it is clear that the family businessdoesn’t mean only the SMEs, but also the large sized corporate, which affects the national andinternational economy. Specially, in the context of developing countries, it can be said that the almost ofthe businesses are family business except government owned corporations.Indian family business can’t
be generalized as simply the family business. And the corporate governance of Indian family businesscan’t be described so easily. Because, although the Indian family businesses are controlled by samefamily or race, the subsidiaries are being listed in various stock exchange companies. And various
national and international investors are investing in their subsidiaries. Furthermore, the Indian familybusiness differs from Korean family business from the view point of board structure as well as
investment pattern of subsidiaries. Even though, there are so many differentiations and specialties ofIndian family business, it is sad to say that、no research has been performed about the corporate
governance system of Indian family business and their subsidiaries.
REFERENCES:
Acedo, F. J., & Casillas, J.C. (2005). Current paradigms in the international management field: anauthor co-citation analysis. International Business Review, 14(2), 619-639.
Boddewyn, J. J. (1999). The domain of international management. Journal of International Management,5(1), 3-14.
Boddewyn, J., Toyne, B., & Martínez, Z. (2004). The meanings of “international management”,
Management International Review, 44(2), 195-212.
http://www.businesstoday.in/magazine/special/oldest-mnc-in-india-siemens/story/194630.html
http:www.tata.com
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