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The Allocation of Family Guanxi-Oriented Control Rights
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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.
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