Family Ownership and Firm Performance

1.Abstract This study provides an update on family ownership and trustworthy death penalty of Hong Kong companies, gleaned from our review of the literature and retiring(a) studies regarding the correlation of family ownership and dissipated performance. We begin the paper with a consolidated description on family ownership and characteristics. We thus develop hypothesis to examine the firm performance and dividend policy of those family owned companies. Information on sh arholdings of 45 listed companies of HSI Constituents was manually collected from HKEX website. Family ownership selective information and financial data were then collected from the sections of Profile of Board of Directors and consolidated financial statements respectively, in each annual reports. We interpret the results to be consonant with the return on equity hypothesis, which family owner company is evaluate to have higher return on equity then non-family owned. However, we cannot conclude if family owned companies have different dividend policy oppose to public-owned companies. 2.Introduction Hong Kong is an international financial centre. In this small city, there is 1385 anatomy of listed companies (include both mainboard and GEM) with total market capitalization of $20,771 Billion HKD.

As a former British dependent territory, British had prevail the ownership and control of major banks, corporations, and local institutions. In past few decades, highly successful local entrepreneurs rise up. Today, Hong Kongs security market combines a traditional Asian family-controlled patronage environment, characterized by high family ownership of listed corporations. In Hong Kong, most listed companies are tended to be owned and controlled by families. Hong Kong Society of Accountants conducted a keep abreast of the ownership structure of 553 listed companies in the economy, in 1995 and 1996. The result shows that 53% of companies are controlled by either one person or one family group, who owns more than half of the entire issued... If you want to pulsate a full essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.