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

Filatotchev, Igor, Zhang, Xiaoxiang and Piesse, Jenifer (2010) 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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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
Additional Information: From the issue entitled "Special Issue: Managing corporate governance globally: An Asia Pacific perspective"
Uncontrolled Keywords: Multiple agency perspective, Family control, Private information risk, Emerging economy, Hong Kong, D82, G14, G34
Subjects: N300 Finance
P100 Information Services
Department: Faculties > Business and Law > Newcastle Business School
Depositing User: EPrint Services
Date Deposited: 04 Mar 2011 15:41
Last Modified: 17 Dec 2023 13:42

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