The University of Texas at Dallas

School of Management

Working Papers

FAMILY OWNERSHIP AND CONTROL IN LARGE FIRMS:
THE GOOD, THE BAD, THE IRRELEVANT -- AND WHY

By Mike W. Peng (University of Texas at Dallas) and Yi Jiang (California State University, East Bay)

Abstract

There is a major debate regarding the role of concentrated family ownership and control in large firms, with three positions suggesting that such concentration is (1) good, (2) bad, or (3) irrelevant for firm performance. This article reports two studies to shed further light on this debate. Study 1 uses 744 publicly listed large firms in eight Asian countries to test competing hypotheses on the impact of the combination of family ownership and control on firm performance. On a country-by-country basis, our findings support all three positions. On an aggregate, pooled sample basis, the results support the "irrelevant" position. Study 2, based on a sample of 688 firms from the same eight Asian countries, endeavors to answer why Study 1 obtains different results for different countries. We theorize and document that Study 1 findings may be systematically associated with the level of shareholder protection embodied in legal and regulatory institutions. Study 2 thus sketches the contours of a cross-country, institution-based theory of corporate governance. Overall, our two studies lead to a finer-grained and more cumulative understanding of the crucial debate on family ownership and control in large firms. PDF.

HOW DO FUTURE BUSINESS LEADERS VIEW GLOBALIZATION?

by Mike W. Peng and Hyung-Deok Shin

Abstract
Recent anti-globalization protests reveal a wide divide between the elites and the public in terms of how they view globalization. Therefore, it seems important to know the attitude toward globalization held by future business leaders, who are being educated currently and who will shape the global economy in the future. We find that college students, albeit at a young age, hold a substantially more positive view toward globalization when compared with the general public. Business majors and students with white-collar parents are especially likely to have such a positive attitude. The implications of these findings for international business research and education are discussed. PDF.