Quantitive Analysis On Control Of Listed Family Business In China

The family business is of great importance in an economy, and hasbecome a research topic by more and more scholars after the economic reformin China. Currently, the focus of most of the research is whether familybusiness is a more effective corporation form, and in order to answer thequestion, analysis explores the impact of the governance structure and controlon the performance of listed family business, of which explanation resorts tothe agency theory, private benefits of control theory and game theory in thecorporate governance area of study. This thesis instead, considering that theimpact of family control of performance of the corporation is limited,analysed the impact of performance of the corporation on the family control,and other factors that may affect the family control, including the size, ageand founding mode of the corporation. Based on that, this thesis selectsChinese listed companies with a natural person or a family as the ultimatecontroller who at the same time is the chief director of the board or the general manager by the end of the year2010, raises four hypothesis withregards to the relationship between performance, size, age and founding modeof the corporation with the family control, and reached the followingconclusion through regression analysis: the performance and the size of thecorporation positively impacts the family control; the longer the listed familybusiness operates, the lower the family control percentage is; and the familycontrol percentage is higher if the listed family business is directly founded bythe ultimate controller.