Family-concentrated ownership in Chinese PLCs: Does ownership concentration always enhance corporate value?

Artikel

In this paper we investigate the relationship between family ownership structure and corporate value across a sample of 1314 firm-year observations of China's family publicly listed companies (PLCs), from 2004 to 2008. We find a significant inverse-U-shaped relationship between the controlling family's ultimate cash-flow rights and corporate value; as measured by Tobin's Q. That is, as family-ownership concentration increases, corporate value first increases and then decreases. This finding refreshes our understanding of the relationship between family-ownership concentration and corporate value in emerging economies such as found in China. We corroborate prior findings that when controlling families hold excess control over cash-flow rights, corporate value is significantly lowered, while multiple large shareholders structure is significantly associated with higher corporate value. In addition; board independence is found to significantly improve corporate value in the context of family-concentrated ownership. We also test for potential endogeneity between family ownership and corporate value and find our results to be robust.

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• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: International Journal of Financial Studies ; ISSN: 2227-7072 ; Volume: 2 ; Year: 2014 ; Issue: 1 ; Pages: 103-121 ; Basel: MDPI

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: China ; corporate value ; family concentrated ownership ; family firms ; ultimate ownership structure

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Luo, Jin-hui ; Liu, Heng
• Ereignis: Veröffentlichung
• (wer): MDPI
• (wo): Basel
• (wann): 2014

Weitere Informationen

• DOI: doi:10.3390/ijfs2010103
• Handle: http://hdl.handle.net/10419/103578