Study on Governance Performance of Family Listed-Companies Based on Factor Analysis

We select the sample of 115 family firms in China which became private ownership before December 31st of 2005.And for overcoming collinearity then we use factor regression to examine whether there is relation between corporate governance factors of public family firms in China and their performance,and what it is if have.There are two steps in this study.The first is factor analysis in order to pick-up new independent and dependent variables.The second is factor variables regression.The outcome indicates that the relation between family' control power and corporate performance presents prominent positive relation.Salary of high-level managers and general manager'control power present same positive relation with performance,but its effect is weaker.The optimum proportion of family stock share is inexistence.