Family Corporate Governance Structure And Performance Of The Empirical Research

The family holding listed companies that develops swiftly and violently in our country have been playing a significant role in the economy. The achievements of these companies are more outstanding than non-family holding listed ones, and also they will face the peak of management rights translation from entrepreneur to successor. Until now, the researches on taking family holding listed companies as a single sample is very less and most of them use data of 2001 year, which is little, out of date, and lack of contigent. On the other hand, at present, when researching the corporate governance and performance of the listed companies, domestic scholar emphasize particularly on the relationship of the stock rights structure and performance of the company, especially of the centrilization of stock rights and company's performance, and have not achieved a consist conclusion. So this paper take the family holding listed companies as the object, researching the relationship between corporate governance and performance of a family holding listed company.In this study, ROE and EPS are chosen as company performance variables, corporate governance is characterized by thirteen attributes, which are the cashflow rights, the control rights, the separation rate, the family strength, the proportion of managerial ownership, the size of the directorate, the proportion of family directors to total number of directors on the board, the proportion of independent directors to total number of directors on the board, the size of board of supervisors,the CEO duality, the board chairman's pay, the independent director's pay and all managers' pay. Meanwhile, firm leverage and dividend average are chosen as the control variables. This study is based on a sample of 115 Chinese family holding listed companies. The results indicate that the proportion of cashflow rights, the proportion of managerial ownership, the board chairman's pay and all managers' pay are significantly and positively related to the company performance, the separation rate, the CEO duality and the family strength are significantly and negatively related to the company performance, the size of the directorate and the proportion of family directors have upside down U shape with the company performance, while the coefficients for the other independent variables are insignificant. Based on the empirical evidences, this paper provides some advice on improving Chinese family holding listed companies' performance.