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An Empirical Analysis On Corporate Governance Structure Of Family Firms From Listed Companies In China

Posted on:2009-02-28Degree:MasterType:Thesis
Country:ChinaCandidate:C XuFull Text:PDF
GTID:2189360272981451Subject:Business management
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Startup Enterprises develop fast in recent years. They always have a small scale, and the majorities of this business have a feature of family-controlling, so this paper studies Startup Enterprises mostly concentrating on Family Firm.The purpose of this paper is to study how the variables of Corporate Governance such as family holding and institutional investors holding affect enterprise performance and management behavior by taking advantage of related data of listed companies of SME Board in 2006.The main purpose is to analyze whether family shareholders of the company use their right of controlling to damage the interests of small shareholders in small and medium Family Firms. In addition, this paper wants to know whether institutional investor holding have a corrective role on certain negative impact brought by family holding through empirical analysis.According to analysis, this paper gets four major features in SME Board:①Family-controlling will hamper enterprise performance.②Institutional investor holding will have an opposite effect with Family-controlling.③Independent directors of company cannot promote a higher performance.④The reunification of the rights of Chairman and General Manager only has an obscure effect in enterprise performance.So this paper can find the Family Firms in SME Board in China have differences in Corporate Governance and the effect to enterprise performance with the enterprises in Main Board. Therefore, small and medium Family Firms must pay particular attention to the adverse effects of Corporate Governance which are brought by the Family-controlling, such as plundering of controlling and performance constraints or other problems; At the same time we should actively develop and foster institutional investors, because the professional and other advantages of institutional investors will be reinforced in its participation in Corporate Governance, thereby enhancing the performance of enterprises and creating the value of enterprise.The main contribution is that this paper analyzed the differences in Corporate Governance between the Family Firms in SME Board and Main Board, thereby filling a gap in current researches; At the same time, the current researches had not associated with the effects of Family-controlling and institutional investors.This paper investigates the relationships of the two major shareholders and their impact on corporate performance. With the development and the perfection of China's Capital Market, institutional investors will play a bigger role on the shareholding structure and its impact will certainly increase.
Keywords/Search Tags:SME Board, Corporate Governance, Family holding, Institutional investor holding
PDF Full Text Request
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