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The financial and operating performance of Chinese family-owned listed firms

Author

Listed:
  • Ding Yuan

    (China-Europe International Business School)

  • Zhang Hua

    (China-Europe International Business School)

  • Zhang Junxi

    (Central University of Finance and Economics)

Abstract

Abstract and Key Results While existing studies often use sector-level data to explain the phenomenal growth of the Chinese private sector, this paper complements the literature by using firm-level data to conduct a comparative study of performance between family-owned and state-owned firms in China. Taking a population comprising listed firms for the period 1999–2004, we analyze financial and operating performance with reference to five measures: (1) revenue per employee, (2) revenue per unit of cost, (3) net profit per employee, (4) return on assets, and (5) market-to-book ratio. Having controlled for other firm characteristics, such as size, leverage, firm age, sales volatility, innovation and marketing, institutional environment and industry, our results confirm that family-owned firms achieve significantly better performances than state-owned enterprises. These results support the general consensus that China is increasingly reliant on private companies as an engine for economic growth and an employment hub.

Suggested Citation

  • Ding Yuan & Zhang Hua & Zhang Junxi, 2008. "The financial and operating performance of Chinese family-owned listed firms," Management International Review, Springer, vol. 48(3), pages 297-318, May.
    • Handle: RePEc:spr:manint:v:48:y:2008:i:3:d:10.1007_s11575-008-0017-9
    DOI: 10.1007/s11575-008-0017-9
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