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

Ding Yuan, Zhang Hua and Zhang Junxi
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Ding Yuan: China-Europe International Business School
Zhang Hua: China-Europe International Business School
Zhang Junxi: Central University of Finance and Economics

Management International Review, 2008, vol. 48, issue 3, No 3, 297-318

Abstract: 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.

Keywords: China; Family-owned Firms; State-owned Firms; Performance (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s11575-008-0017-9

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