Corporate governance and performance in publicly listed, family-controlled firms : evidence from Taiwan
Date
2005-09
Authors
Filatotchev, Igor
Lien, Yung-Chih
Piesse, Jenifer
Journal Title
Journal ISSN
Volume Title
Publisher
Springer Verlag
Abstract
Using a multi-industry dataset of 228 firms listed on the Taiwan Stock Exchange (TSE) this paper analyses the effects of ownership structure and board characteristics on performance in large, publicly traded firms that are controlled by founding families. After taking account of possible endogeneity problems, we do not find that family control is associated with performance measured in terms of accounting ratios, sales per issued capital, earnings per share and market-to-book value. However, share ownership by institutional investors, and foreign financial institutions in particular, is associated with better performance. Our results indicate that board independence from founding family and board members’ financial interests have a positive impact on performance.
Description
The original publication is available at http://link.springer.com/journal/10490
Keywords
Corporations -- Taiwan, Corporate profits -- Taiwan, Corporate governance -- Taiwan, Family-owned business enterprises -- Taiwan
Citation
Filatotchev, I., Lien, Y-C. & Piesse, J. 2005. Corporate governance and performance in publicly listed, family-controlled firms: evidence from Taiwan. Asia Pacific Journal of Management, 2(3):257-283.