An empirical study of Chinese large listed family firms: financial performance and R&D investment strategy

Chen, Wenwei (2024) An empirical study of Chinese large listed family firms: financial performance and R&D investment strategy. PhD thesis, University of Glasgow.

Abstract

The aim of this thesis was to critically examine ‘large’ listed family firms (FFs) in China in terms of the role of family involvement (i.e., ownership and control) and the moderating effect of firm size within large listed FFs’ short-term financial performance and R&D investment strategy for the longer term. The focus of this study was on a dataset of 654 Chinese listed FFs (including 490 large-sized FFs) from 2021. The results suggest that family ownership played a significant and positive role in large listed FFs’ financial performance; but within the sample, firm size had no moderating effect on the relationship. Family CEO presence was also significantly, but negatively, associated with financial performance. In terms of long-term strategic performance, family ownership had a significant but negative impact on risky R&D investment; as firm size increased, such a significant impact was not found. Furthermore, family CEO presence was insignificantly and positively associated with R&D investment. However, as firm size increased, the impact of family CEO presence on R&D investment became significant and positive.

These findings highlight the complexity of large FFs across different sizes and the need to consider multiple factors when weighing financial performance and R&D investment. Theoretically, this study contributes to agency theory, the stewardship perspective, the socioemotional wealth (SEW) theory and the institution-based view (IBV) in exploring the impact of family shareholdings and family CEO presence on large listed FFs’ financial performance and R&D investment. Additionally, these findings could potentially contribute to practitioner decisions, especially for large listed FFs. Overall, this study contributes to a comprehension of the dynamics within FFs and provides insights into potential areas for future research.

• Item Type: Thesis (PhD)
• Qualification Level: Doctoral
• Subjects: H Social Sciences > HG Finance
• Colleges/Schools: College of Social Sciences > Adam Smith Business School
• Supervisor's Name: Warner, Dr. Karl and Buck, Professor Trevor
• Date of Award: 2024
• Depositing User: Theses Team
• Unique ID: glathesis:2024-84687
• Copyright: Copyright of this thesis is held by the author.
• Date Deposited: 12 Nov 2024 14:10
• Last Modified: 12 Nov 2024 14:19
• Thesis DOI: 10.5525/gla.thesis.84687
• URI: https://theses.gla.ac.uk/id/eprint/84687