Familism And Corporate Governance

It is culture as an informal institutions,that affecting the political and legal systems,and ultimately affect the corporate governance practices.It is only get the relationship of culture and corporate governance,we can understand the nature of corporate behavior and find the solution of the problem of corporate governance.But,the study of cultue and finance often comparing behaviors acorss nations,we canno't differentiate the diffenent of it,come from culture,or come from other factors,such as polites or law.China is a fitting natural test case because it has more diversified culture and politically unified than acorss nations samples.By review the three features of family institution,we offer two proxy variabes of familism,sex rate at birth and proportion of divorced population.From the view of ownership structure,CEO duality and management turnover,we study the relationship between familism and corporate governance.The paper consists of seven chapters:The first chapter introduces the background,framework and contribution of this paper.The second chapter is literature review,it introduces the basic concepts and content of corporate governance,the relevant literature of ownership structure,the related literature of CEO duality and the relevant literatur of Management turnover,and finally,the related literature of cultural and finance.The third chapter introduces the history and characteristics of the family system,the contents of the familism and measure variable.The family system of China,experienced a parent late primitive society,the feudal patriarchal clan system of Shang and Zhou Dynasty,large shizu family system of Southern and Northern Dynasties family,the modern family system after the Song Dynastiers.It is the final victory of the new democratic revolution that end the family system.There are three characteristics of the family system:patriarchal patriarchy,marriage of family and family wealth to all family number.This study focus on two elements of familsim:order structure and authority orientaition.Finally,the chapter presented two proxy to measure the family culture:sex rate at birth and proportion of divorced population.The fourth chapter analyzes the relationship between the familism and ownership structure.In private listed companies as samples and found a strong family culture more,the higher the private ownership concentration of listed companies,thus proving the influence of culture on family ownership structure.The fifth chapter analyzes the relationship between the familism and CEO duality.In private listed companies,the more high prevalue of familisim,the more high probality of CEO duality.The paper also analyzed other factors affecting the CEO duality.Continued research find,the effect of familism on CEO duality is singfinance on the direct listing private corporations,but insingfinace on the indirect listing private corporations.On the direct listing private corporations,the effect is insingfinance duing the IPO period,but singfinance after the CEO and COB turnover.The sixth chapter analyzes the relationship between the culture and management turnover.In private listed companies as samples,the stronger of family culture;the lower the likelihood of the general manager is changed,the worse the performance sensitivity of management turnover,which shows in different cultures,companies have different model of corporate governance.In the event of changes to the general manager of private enterprises in the sample,the more strong family culture,performance and general manager after the change to improve the situation worse.Possible contribution of this study are:(1)Present two proxies of familism:sex rate at birth and proportion of divorced population.(2)Found the relationship of familism and ownership structure,CEO duality,management turmover,proved the influence of familism on corporate govenance.(3)Select a country sample,which better able to control other factors,the results get obtained are more reliabe than the results get from across nations samples.(4)The study of culture and finance,and extended to the family culture in this particular field.