This paper explores how the preservation of socioemotional wealth can be
manifested in the control and corporate governance of Malaysian Chinese
firms. Using panel data from the Industrial Products index of the Bursa
Malaysia (the Malaysian stock exchange) during 2003-2006, we show that
the ingrained ‘life-raft values’ among overseas Chinese entrepreneurs
can be associated with the preservation of their socioemotional wealth,
and thus they prioritize control over their firms. Additionally, we
confirm the monitoring role of non-dominant large shareholders in
reducing the families’ influence in managing and enhancing their firms’
performance. Specifically, control contestability exercised by the
non-dominant large shareholders mediates the relationship between a
family’s involvement in management and their firm’s performance.