Chinese Family Enterprises' Equity Risk Features

ABSTRACT:This paper combined finance, financial econometrics, investment and new institutional economics, set sight on the structure of listed family corporate in China, tried to analyze the effect of the structure to stock risk features of these listed family enterprise, and used both qualitative and quantitative methods, on the basis of summing up relative research accomplishment at home and abroad, proposed rational hypothesis, and utilized ARCH to analyze data from Jan,4th,2006 to Jan,4th,2010,of which 158 listed family and non-family corporation stocks are randomly selected. The study showed that:(1) listed family enterprises has strong resistance to outside information impulse, when stricken by impulses outside, the corporate has quick reaction to weaken the impulse;(2) on the condition of information asymmetry, investors think the risk of family corporations are higher than that of non-family corporations.