B选项family control

问题如下：

BR Hotels’ corporate governance risk is increased by:

选项：

CEO duality

family control.

the low percentage of independent board members

解释：

C is correct. The corporate governance risk for BR Hotels is high due to a low percentage of independent board members. Of the 15 members on the board, only one is independent. Many OECD countries have introduced a recommendation for the minimum ratio of independent directors serving on the board. They typically set the minimum ratio of independent directors in a range of 20%–50% or greater. BR Hotels falls below this range.

A is incorrect since CEO duality is not a governance problem for BR Hotels. BR Hotels’ CEO and chairperson are separate, so there is no CEO duality. This is typically a sign of effective corporate governance. The independent chairperson and CEO roles help protect investor interests.

B is incorrect because family control is not likely to increase governance risk for BR Hotels. Family control lowers the risks associated with principal-agent problems. This is the result of the family’s having concentrated ownership and management responsibility. The lower risk associated with the principal-agent problem is somewhat offset by the drawbacks of family control, which include poor transparency, modest considerations for minority shareholder rights, and difficulty in attracting quality management talent.