Abstract
This proposal outlines our research to assess the impact of cumulative voting (CV) on the firm value of family-owned businesses in China. We aim to investigate how the effectiveness of CV is influenced by other corporate governance practices. Drawing on the Principal-Principal perspective in agency theory, we contend that implementing CV can have a greater positive impact on firm value if the second largest blockholder is a financial institution. However, if the controlling family also holds the CEO position, the effectiveness of CV may be considerably diminished. We will discuss the implications of our findings.