Ownership Concentration, Firm Performance, and Dividend Policy in Hong Kong

Posted: 17 Nov 2009

See all articles by Zhilan Chen

Zhilan Chen

affiliation not provided to SSRN

Yan-Leung Cheung

The Education University of Hong Kong

Aris Stouraitis

affiliation not provided to SSRN

Anita Wong

affiliation not provided to SSRN

Date Written: 2005

Abstract

The relations among ownership concentration in family firms, firm performance, and dividend policy in Hong Kong are explored. Three questions are investigated: (1) Is firm operating performance and value affected by concentrated family ownership? (2) Is dividend policy affected by concentrated family ownership? (3) What impact does corporate governance have on performance, value, and dividends in family-controlled firms? Published data on 412 publicly listed Hong Kong firms were collected for the years 1995-1998. Three main findings were reported: (1) analysis shows no positive relationship between family ownership and firm performance (measured as return on assets, return on equity, and market-to-book ratio); (2) family ownership had little relationship to dividend policy; and (3) composition of the board of directors (proportion of independent non-executive directors, presence of audit committee) has little impact on firm performance and dividend policy. Finally, several policy implications derived from the analysis are presented. (TNM)

Keywords: Stock dividends, Firm governance, Financial policies, Family firms, Firm ownership, Firm performance

Suggested Citation

Chen, Zhilan and Cheung, Yan-Leung and Stouraitis, Aris and Wong, Anita, Ownership Concentration, Firm Performance, and Dividend Policy in Hong Kong (2005). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1507556

Zhilan Chen (Contact Author)

affiliation not provided to SSRN

No Address Available

Yan-Leung Cheung

The Education University of Hong Kong ( email )

Department of Social Sciences
10 Lo Ping Road, Tai Po, New Territories
Hong Kong
Hong Kong

Aris Stouraitis

affiliation not provided to SSRN

No Address Available

Anita Wong

affiliation not provided to SSRN ( email )

No Address Available

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