Multiple agency perspective, family control, and private information abuse in an emerging economy

Filatotchev, Igor, Zhang, Xiaoxiang and Piesse, Jenifer (2011) Multiple agency perspective, family control, and private information abuse in an emerging economy. Asia Pacific Journal of Management, 28 (1). pp. 69-93. ISSN 0217-4561

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Abstract

Using a comprehensive sample of listed companies in Hong Kong this paper investigates how family control affects private information abuses and firm performance in emerging economies. We combine research on stock market microstructure with more recent studies of multiple agency perspectives and argue that family ownership and control over the board increases the risk of private information abuse. This, in turn, has a negative impact on stock market performance. Family control is associated with an incentive to distort information disclosure to minority shareholders and obtain private benefits of control. However, the multiple agency roles of controlling families may have different governance properties in terms of investors’ perceptions of private information abuse. These findings contribute to our understanding of the conflicting evidence on the governance role of family control within a multiple agency perspective

Item Type: Article
Keywords: Multiple agency perspective Family control Private information risk Emerging economy Hong Kong
Schools and Departments: School of Business, Management and Economics > Business and Management
Subjects: H Social Sciences > HG Finance > HG4001 Finance management. Business finance. Corporation finance
Depositing User: Xiaoxiang Zhang
Date Deposited: 25 Jan 2013 09:15
Last Modified: 07 Mar 2017 06:24
URI: http://sro.sussex.ac.uk/id/eprint/43541

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