Abstract
Using Chinese listed family firms from 2007 to 2011 as samples,we investigate the impact of professionalization in family firms on firm value.We use the percentage of non- family members on top management,including(vice) president,(vice) CEO,as the measure for professionalization.Our empirical results show that firm value as well as operation performance is enhanced as professionalization in family firm increases.Further evidences imply that professionalization in Chinese family firms increase firm value because the benefit of reducing type II agency problem exceeds the cost of increasing type I agency problem.
| Translated title of the contribution | Professionalization in family firms and firm value: evidence from Chinese listed family firms |
|---|---|
| Original language | Chinese |
| Pages (from-to) | 127-141 |
| Number of pages | 15 |
| Journal | 金融研究 / Journal of Financial Research |
| Volume | 11 |
| Publication status | Published - 2014 |
| Externally published | Yes |
Keywords
- family firm
- professionalization
- firm value