Family Ownership, Financial Decisions, and Organizational Performance

• Main Authors: Hsiu-Hui Cheng, 鄭秀惠
• Other Authors: Yu-Cheng Chen
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/71605628128599115260

碩士 === 東海大學 === 會計學系 === 95 === In worldwide commercial activities, family firms always play an important role. A large portion of Taiwan’s firms are characterized by family ownership. Previous literature lacked a comprehensive survey of the relationship among family firms, financial decisions and organizational performance. This study tends to use Taiwan’s listing corporations controlled by families to investigate the family ownership from the perspectives of financial decisions and organizational performance. Besides, the study further examines whether financial decisions will affect organizational performance in family firms. I expect to help firms make the best financial decisions and maximize the firm performance. The results are following. First, on the financial decisions, the higher family ownership indicates the higher cash dividend payout ratio, the lower cost of capital, stock dividend payout ratio and R&D ratio. Second, on the organizational performance, the higher family ownership indicates the higher performance. Third, on the relationship between financial decision controlled by family firms and organizational performance, cash (stock) dividend payout ratio are positively (negatively) correlated with performance, and cash (stock) dividend payout ratio and family ownership interactively are negatively (positively) correlated with performance; R&D ratio are positively correlated with performance. However, R&D ratio and family ownership interactively correlates insignificantly with performance. Consequently, when family firms manipulate dividend and investment decisions appropriately, they could create higher organizational performance.