Corporate board and board committee independence, firm performance, and family ownership concentration : An analysis based on Hong Kong firms

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)16-31
Journal / PublicationJournal of Contemporary Accounting and Economics
Volume10
Issue number1
Online published4 Dec 2013
Publication statusPublished - Apr 2014

Abstract

This study examines whether the relationship between corporate board and board committee independence and firm performance is moderated by the concentration of family ownership. Based on a sample of Hong Kong firms, we find no significant association between the independence of corporate boards or board committees and firm performance in family firms, whereas board independence is positively associated with firm performance in non-family firms. Additionally, our findings show that the proportion of independent directors on the corporate boards of family firms is lower than that of non-family firms, but we find no significant difference in the representation of independent directors on the key committees of corporate boards between family and non-family firms. Overall, these results suggest that the "one size fits all" approach required by the regulatory authorities for appointing independent directors on corporate boards may not necessarily enhance firm performance, especially for family firms. Thus, the requirement to appoint independent directors to the corporate boards of family firms needs to be reconsidered. © 2013 Elsevier Ltd.

Research Area(s)

  • Board independence, Committee independence, Family firms, Firm performance

Citation Format(s)

Corporate board and board committee independence, firm performance, and family ownership concentration : An analysis based on Hong Kong firms. / Leung, Sidney; Richardson, Grant; Jaggi, Bikki.

In: Journal of Contemporary Accounting and Economics, Vol. 10, No. 1, 04.2014, p. 16-31.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review