AJIBM  Vol.4 No.2 , February 2014
The Allocation of Family Guanxi-Oriented Control Rights —Evidence from Family Listed Companies of Zhejiang China
Abstract: Different from the market-oriented control mechanism in British and American, the guanxi-oriented control mechanism is a significant feature in Chinese family business. This paper proposes the concept of family guanxi-oriented control rights allocation for the first time. Based on the analysis about the influencing factors of the family guanxi-oriented control rights allocation, we use the sample companies coming from Zhejiang province of China to do further discussion. We find that 1) the actual controllers of Zhejiang family listed companies mainly have blood relationship; 2) parts of companies allocate the control rights between the family members who have more than three kinds of guanxi; 3) the controlling families prefer to control the board of the listed companies; 4) the intergenerational succession of control rights in Zhejiang family listed companies has been highlighted.
Cite this paper: Gu, L. (2014) The Allocation of Family Guanxi-Oriented Control Rights
—Evidence from Family Listed Companies of Zhejiang China. American Journal of Industrial and Business Management, 4, 100-104. doi: 10.4236/ajibm.2014.42016.

[1]   M. Mustakallio, E. Autio and S. A. Zahra, “Relational and Contractual Governance in Family Firms: Effects on Strategic Decision Making,” Family Business Review, Vol.15, No. 3, 2002, pp. 205-222.

[2]   R. Tagiuri and J. Davis, “Bivalent Attributes of the Family Firms,” Family Business Review, Vol. 9, No. 2, 1996, pp. 199-208.

[3]   M. A. Gallo and J. Sveen, “Internationalizing the family business: Facilitating and restraining factors,” Family Business Review, Vol. 4, No. 2, 1991, pp. 181-190.

[4]   K. Eddleston and F. W. Kellermanns, “Destructive and Productive Family Relationships: A Stewardship Theory Perspective,” Journal of Business Venturing, Vol. 22, No. 4, 2007, pp. 545-565.

[5]   K. Lins, “Equity Ownership and Firm Value in Emerging Markets,” Journal of Financial and Quantitative Analysis, Vol. 38, No. 1, 2003, pp. 139-184.

[6]   E.-T. Chen and J. Nowland, “Optimal Board Monitoring in Family-Owned Companies: Evidence from Asia”, Corporate Governance, Vol. 18, No. 1, 2010, pp. 3-17.

[7]   D. Hiller and P. McColgan, “Firm Performance and Managerial Succession in Family Managed Firms,” Journal of Business Finance and Accounting, Vol. 36, No. 3-4, 2009, pp. 461-484.

[8]   X. T. Fei, “Rural China,” Shanghai SDX Joint Publishing Company, Shanghai, October 1985, p. 25.

[9]   Guanfei Yang, “Guanxi Governance in Chinese Family Business and Its Evolution: Taking Zhejiang Yixing Group as a Case,” Social Sciences Academic Press, Beijing, October 2009, p. 22.

[10]   Weber Max, “Confucianism and Taoism”, Beijing Business Press, Beijing, 1995, p.289.

[11]   Fukuyama, “Trust—Social Morality and Prosperity Creation,” Far East Publisher, Beijing, 1998, p.113.

[12]   X. C. Li and S. J. Zhang, “Family Business: Organization, Behavior and China Economy,” Shanghai People’s Publishing House, Shanghai, 2005, p. 332.

[13]   W. D. Hamilton, “The Genetical Evolution of Social Behavior I, II,” Journal of Theoretical Biology, Vol. 7, No. 1, 1964, pp. 1-52.