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One-Child Policy And Family Firms In China, Cao, Jerry X., Douglas Cumming, Xiaoming Wang
One-Child Policy And Family Firms In China, Cao, Jerry X., Douglas Cumming, Xiaoming Wang
Research Collection Lee Kong Chian School Of Business
Family business plays important roles to fuel economic growth in China. Due to the one-child policy, family firms are increasingly facing human capital constraints for within-family succession. Having only one heir decreases the probability of continuing family management by over 3%, reduces the probability of adult children working in family firms by 14%, and significantly decreases founders' expectations of having young heirs for succession. Having fewer children negatively affects founder's expectation to go public, reduces family firm's reinvestment rate and R&D. Overall, the evidence suggests that the human capital constraints due to the one-child policy impose significant negative impacts on …
Do Family Firms Learn More From Other Family Firms Than From Non-Family Firms? Adoption Of The Board Reform, Toru Yoshikawa, Jung Wook Shim
Do Family Firms Learn More From Other Family Firms Than From Non-Family Firms? Adoption Of The Board Reform, Toru Yoshikawa, Jung Wook Shim
Research Collection Lee Kong Chian School Of Business
Family firms differ from non-family firms because their owners are often motivated not only by economic incentives but also by non-economic considerations. This study investigates the effects of such non-economic motivation, especially the extent of family involvement and family legacy, on the adoption of a new practice, i.e., board reform that was newly introduced in the Japanese context in the late 1990s. Our empirical results show that while family firms are less likely to implement the board reform than non-family firms, board interlocks with other family firms facilitate the adoption. We also found that such factors as large family ownership …