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Relationship between Corporate Governance & Company Performance of Hong Kong Based & China Based Family-Controlled Property Development Companies

Author

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  • Chun Cheong Steve Fong

    (Macao Polytechnic Institute)

Abstract

This study is to investigate the relationship between Corporate Governance (CG) disclosure and financial performance of both Hong Kong based and China based family-controlled property development companies listed on Hong Kong Stock Exchange. 10 leading companies with the largest market capitalization are studied in each category. Evaluation of the quality of CG disclosure is conducted through a checklist of mandatory and recommended disclosures developed with reference to the Hong Kong Listing Rules about CG disclosure and financial information, the Best Practice Guidance of CG disclosure provided by Hong Kong Institute of Certified Public Accountants (formerly Hong Kong Society of Accountants), and the information about the specific performance evaluation indicator in the property development companies. It is found that there is a positive relationship between CG disclosure and financial performance in Hong Kong based companies, especially operating profit margin and net profit margin. This study provides evidence to support the relationship between CG disclosure and financial performance.

Suggested Citation

  • Chun Cheong Steve Fong, 2017. "Relationship between Corporate Governance & Company Performance of Hong Kong Based & China Based Family-Controlled Property Development Companies," Proceedings of Business and Management Conferences 5607197, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:ibmpro:5607197
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corporate Governance; financial performance; Hong Kong property industry;
    All these keywords.

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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