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Corporate Governance and Performance in Publicly Listed, Family-Controlled Firms: Evidence from Taiwan

Author

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  • Igor Filatotchev
  • Yung-Chih Lien
  • Jenifer Piesse

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. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Igor Filatotchev & Yung-Chih Lien & Jenifer Piesse, 2005. "Corporate Governance and Performance in Publicly Listed, Family-Controlled Firms: Evidence from Taiwan," Asia Pacific Journal of Management, Springer, vol. 22(3), pages 257-283, September.
    • Handle: RePEc:kap:asiapa:v:22:y:2005:i:3:p:257-283
    DOI: 10.1007/s10490-005-3569-2
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