Family control and corporate cash holdings: Evidence from China

This study examines the effect of family control on the cash holding policy in China. We find that family firms with excess control rights tend to have high cash holdings that are tunneled rather than being invested or paid to shareholders. We further show that the incentive for controlling families to hold cash and for tunneling is exacerbated by the agency conflict between controlling and minority shareholders, i.e., it is weakened after the Chinese Non-tradable share (NTS) reform and strengthened by the presence of multiple large shareholders who probably play no monitoring role in Chinese family firms. Furthermore, family firms’ incentive to hold cash for tunneling is influenced by the unique characteristics of Chinese firms in the following ways: the incentive is stronger when the family founder has one child and face family succession problem, and when the founder has political connections and directly involves in firm’s management; while it is weakened by family founder’s social interpersonal trust with other entrepreneurs through their membership of Chambers of Commerce. Overall, we argue that family firms in China tend to hold high levels of cash for tunneling, which harms firm value, while the severe controlling-minority shareholder agency conflicts and unique Chinese family characteristics only make this situation worse.

The influence of cultural attributes on intergenerational succession in the Chinese-Australian family business

Research on succession in family business has been traditionally concentrated on planning and strategies in terms of management, ownership and governance. There is an increasing concern on the family influence on the process of succession. This paper discusses the role that the family culture plays in sustaining a family's commitment to its business. In particular, the family business is a prominent form of organisation among the ethnic Chinese expatriate business families. Since the I 980s, under the business migration programme, the increase of Chinese migrants has contributed significantly to the cultural landscape of Australian. This paper chooses Chinese-Australian family businesses to explore their cultural characteristics as a strong family influence on the practices of pas sing on the business to the next generation.

Challenges of inter-generational succession in the Chinese Australian family business

Chinese immigrants have long been a feature of Australia's population mix and play a critical role in the country's economic activities, with particular contribution by Chinese family-owned businesses. Although these family-owned businesses can generate and significantly improve the financial wealth which stems from the family's original fortune, most Chinese family businesses are relatively short-lived, rarely extending beyond one generation. The high mortality rate in family businesses points primarily to the challenges of management succession. There is recognition that inter-generational succession is essential for both the profitability of Chinese family businesses and the welfare of the family as a whole. However, the intentions of inter-generational pursuit of continuity can be subject to the different goals and interests of key participants, as well as the surrounding context in which the business develops. This paper presents issues pertaining to the inter-generational diversity that might challenge the business continuity of Chinese family businesses, through the identification of how individuals perceive, relate to and initiate the succession process.

Challenges of family business succession: Chinese-Australian case studies

This thesis explores the factors and values that have impacted on succession choices prior to the succession event in Chinese-Australian first-generational family businesses. Founders demonstrated an oscillation between the choices of a family-based succession and a business-based succession, which was influenced by the multifaceted Chinese-Australian family business context.

The succession decision in Chinese–Australian family businesses : an exploratory study

This article explores the factors used to make succession choices as ethnic Chinese family business founders integrate into their host country, Australia. An empirical study of six Chinese–Australian family businesses was used to analyse what factors influence the succession decision-making process. Results show three broad factors influenced the founders’ decisions, including the aspirations and visions of the business founders, cultural and individual values shaped in the integration process, and the options that are available for succession. Findings challenge the anticipated option of intergenerational succession, with its emphasis on family-oriented collectivistic values as expectations. It provides future support for considering how the cultural value orientation (collectivistic, individualistic, or transitional) has impacted on the founder’s succession choices. Further research is required to understand how the flexible, changing, situational founder’s succession intentions are manifested among family businesses in cultural transition.

C-direct: a family business

A business is a multifaceted organism; made up of mutually dependent employees whose connection to each other is largely dependant on their role within the entity. Being in a family is a very similar experience. So when family and business interact, managing both can be a challenge. This case study focuses on issues that contribute to a successful family business infrastructure, and the issues and trends that they identify as significant - for example, the importance of a succession plan within the family business environment.

Succession and Indigenous Australians : addressing Indigenous customary law notions of 'property' and 'kinship' in a succession law context

The purpose of this article is to critically evaluate the existing capacity of Indigenous people to exercise succession rights against their estate. This article begins with a discussion of the sources of the general succession laws in Australia, noting that they have derived from UK law, where the common law notions of property, property rights and family, including the expectational right to succeed to property, are all important factors. These common law notions do not easily fit within the spectrum of Indigenous customary law. Generally, many Indigenous Australians will die without executing a valid will (ie, they die intestate) and it is here that this article undertakes an examination of the general intestacy laws in all Australian jurisdictions noting the inadequacy of the provisions to recognise Indigenous persons’ spiritual and cultural obligations to property, land or otherwise, together with a failure to distinguish extended Indigenous kinship relationships under Indigenous customary law. It is argued that Indigenous people who die intestate should be supported by a flexible and adaptive intestacy framework, responsive to the full customary and cultural responsibilities of the deceased, thus promoting an organic and developmental approach to succession entitlements.