FamilyFirms,andCompanyPerformanceEvidencefrom

《FamilyFirms,andCompanyPerformanceEvidencefrom》由会员分享，可在线阅读，更多相关《FamilyFirms,andCompanyPerformanceEvidencefrom（17页珍藏版）》请在装配图网上搜索。

1、Transparency Index,Family Firms,and Company Performance:Evidence from Hong KongYan-LeungCheungYan-LeungCheungSchoolofBusinessHongKongBaptistUniversity1OutlineOur findingsMotivationResearch designResultsConclusions15/04/20242Our FindingsCompany performance is positively associated with the quality of

2、 information disclosure;Furthermore,company performance is positively associated with a companys level of voluntary disclosure;Hong Kong listed companies with larger size,better profitability,more outside directors,and that are non-China related tend to have a higher level of voluntary disclosure;Fa

3、mily-dominated companies tend to be less transparent on a voluntary basis.15/04/20243MotivationCorporate disclosure is important to protecting the rights of shareholders;Corporate disclosure is particularly important in East Asia,as most Asian companies are dominated by a few majority shareholders o

4、r families;The key issue in Hong Kong is the agency conflict between majority and minority shareholders;Adequate information disclosure is of particular importance in order to safeguard the interests of minority shareholders.15/04/20244Research DesignSample selectionOur sample consists of the larges

5、t companies that are constituent stocks of four major indices in the Hong Kong Exchange and Clearing Limited(HKEx):HSI,HSHKCI,HSI,HSHKCI,HSCCI,and HSCEIHSCCI,and HSCEI;The final sample contains 168,168,and 174 companies in 2002,2004,and 2005,respectively;Our sample represents almost 90%of total mark

6、et capitalization and almost 80%of market turnover in Hong Kong.15/04/20245Research DesignConstruction of Transparency Index(TI)A set of criteria is developed to measure the quality of disclosure from the best practice recommendations of the OECD Principles(OECD,2004);A total of 60(criteria and sub-

7、criteria)items form the scorecard used to assess each firm in our sample;Our data sources include annual reports,notices to call shareholders meetings,company websites,and other sources available to the general public;We calculate the TI as the equally weighted score of all 60 criteria.The TI ranges

8、 from 0 to 100.15/04/20246Research DesignConstruction of Transparency Index(cont.)Mandatory Disclosure Index(MDI):24 criteria are mandated by the HKEx in the Code Provision for Hong Kong listed companies.The other 36 criteria,delineated as Recommended Best Practices of the Code of Corporate Governan

9、ce as voluntary disclosure criteria(VDI).15/04/20247Research DesignPerformance measuresTobins Q,market-to-book ratio(MTBV),and cumulative abnormal return adjusted using the Fama and French(1993)three-factor model(CAR)to measure stock performance15/04/20248Research DesignDefinition of other variables

10、15/04/20249ResultsDescriptive statistics for Transparency Index15/04/202410ResultsUnivariate test of corporate valuation across different Transparency Index levels15/04/202411ResultsRegression of corporate valuation on transparency index15/04/202412ResultsRegression of corporate valuation on MDI and

11、 VDI15/04/202413ResultsRegression of TI on company characteristics15/04/202414ConclusionsBased on the OECD Principles of Corporate Governance(OECD,2004),this study uses a comprehensive set of criteria to construct a transparency index to measure the corporate governance disclosure practices of the l

12、argest companies in Hong Kong during 2002-2005.we show that company performance is positively related to a companys disclosure practice.Furthermore,this study finds that company performance is positively associated with companies with a higher level of voluntary disclosure,but is not associated with

13、 mandatory disclosure.15/04/202415ConclusionsHong Kong listed companies with larger size,better profitability,a remuneration committee,more outside directors,and that are non-China related tend to have a higher level of voluntary disclosure.Finally,family-dominated companies tend to be less transparent on a voluntary basis.15/04/202416Thank You!17