Article

China Accounting and Finance Review

, 18:6

First online:

Open Access This content is freely available online to anyone, anywhere at any time.

Family Business Governance: An Economics Interpretation and Research Implications in China

  • Zengquan LiAffiliated withSchool of Accounting, Institute of Accounting and Finance, Shanghai University of Finance and Economics
  • , Guoliang ZhouAffiliated withSchool of Accounting, Institute of Accounting and Finance, Shanghai University of Finance and Economics
  • , Feng GuanAffiliated withLixin Accounting Research Institute, Shanghai Lixin University of Commerce Email author 
  • , Junxia LiuAffiliated withHang Seng Management College

Abstract

Family businesses are a common organisational form worldwide. Issues such as forms of family business governance, reasons for adopting this specific form of governance, and the governance efficiency of family businesses have attracted extensive attention from economics researchers. After reviewing relevant studies, we find that Western scholars focus primarily on the governance efficiency of family businesses, and offer insufficient empirical evidence explaining the reasons for adopting various forms of governance. By contrast, Chinese scholars have conducted extensive research on listed and unlisted family businesses in China, presenting multi-perspective studies of the economic consequences of family governance for listed companies. Building on the basic ideas of property economics, we develop a theoretical framework for analysing family governance and use it to explore the possible influence of uniquely Chinese institutional variables on family business governance. The results can serve as a reference for future research on Chinese family businesses.

Keywords:

Family Business Property Economics Governance Institution