Using a comprehensive sample of listed companies in Hong Kong, this paper investigates how family control affects private information abuses and firm performance in emerging economies.

It is proposed that family ownership and control over the board increases the risk of private information abuse. This, in turn, has a negative impact on stock market performance. These findings contribute to the understanding of the conflicting evidence on the governance role of family control within a multiple agency perspective.

Was family control shown to be associated with an incentive to distort information to certain stakeholders? Read the full report below to find out more.