This paper seeks to examine the relationship between board committees and firm performance and the moderating effect of family ownership for public companies in Hong Kong.
Abstract
Purpose
This paper seeks to examine the relationship between board committees and firm performance and the moderating effect of family ownership for public companies in Hong Kong.
Design/methodology/approach
This study employs publicly available data from financial databases and annual reports of a sample of 346 firm‐year observations of public companies in Hong Kong for the periods 2001‐2003.
Findings
The empirical evidence indicates that a nomination (remuneration) committee is positively (negatively) related to firm performance, depending on the independence of its composition. Furthermore, family ownership does have an adverse effect on the relationship between board committees, specifically the remuneration committee, and the performance of public companies in Hong Kong.
Research limitations/implications
This study is based on publicly available data and the board process is not actually observed.
Practical implications
The effectiveness of a board committee is contingent on its independence and family ownership.
Originality/value
This paper provides empirical evidence that an independent board committee could enhance the corporate governance of public companies in Hong Kong and would be of interest to regulatory bodies, business practitioners, and academic researchers.
Details
Keywords
This paper seeks to examine the relationship between chief executive officer (CEO) duality and firm performance and the moderating effects of the family control factor on this…
Abstract
Purpose
This paper seeks to examine the relationship between chief executive officer (CEO) duality and firm performance and the moderating effects of the family control factor on this relationship with respect to public companies in Hong Kong.
Design/methodology/approach
This study employs publicly available data from financial databases and the annual reports of a sample of 128 publicly‐listed companies in Hong Kong in 2003.
Findings
Neither agency theory nor stewardship theory alone can adequately explain the duality‐performance relationship. The empirical evidence suggests that the relationship between CEO duality and accounting performance is contingent on the presence of the family control factor. CEO duality is good for non‐family firms, while non‐duality is good for family‐controlled firms.
Research limitations/implications
The study is based on publicly available financial data, and actual board processes are not observed.
Practical implications
The design of board leadership structure is contingent on corporate ownership and control (family control or not).
Originality/value
The paper provides empirical evidence that CEO duality is not necessarily bad for public companies in Hong Kong and would be of interest to regulatory bodies, business practitioners, and academic researchers.
Details
Keywords
Mei Mei Lau, Peggy Mei Lan Ng, Elaine Ah Heung Chan and Cherry Tin Yan Cheung
This study aims to study the attitude toward purchasing luxury fashion of young consumers based on an extended model that integrates the constructs of the theory of reasoned…
Abstract
Purpose
This study aims to study the attitude toward purchasing luxury fashion of young consumers based on an extended model that integrates the constructs of the theory of reasoned action (TRA), identity theory, social identity theory, affect–behavior–cognition (ABC) model of attitude and brand attractiveness.
Design/methodology/approach
A purposive sampling approach was used to collect data from 237 young luxury fashion consumers in Hong Kong. Results were analyzed using partial least square.
Findings
The findings revealed that self-identity predicts affect-based attitudes (i.e. passive engagement and active engagement), and social identity predicts cognition-based attitude (i.e. attitude toward celebrity endorsement). Moreover, both affect- and cognition-based attitudes were found to be antecedents that enhanced brand attractiveness, which in turn positively affected purchase intention.
Research limitations/implications
This study collected data from Generation Z. Although this generation is the world’s most influential consumer group and is highly engaged in social media, the findings may not be representative of the entire population in Hong Kong. Therefore, the findings should be used cautiously in the whole luxury fashion industry.
Originality/value
This study extends the understanding of luxury fashion purchase intention from TRA to the connection among identity, social identity theories and ABC model of attitude and brand attractiveness. The findings of this study also contribute to practical insights on developing suitable marketing strategies for the Asian luxury fashion market.