The CG environment in HK is substantially distinctive
from that of US and UK firms. The ownership
structure of HK-listed companies is commonly
family-based and concentrated. Our data indicate
that in HK, insiders hold 45% of stakes in HK-listed
companies, while in the US, insiders hold approximately
20% of listed firms (Holderness, 2003). This
concentrated ownership structure suggests that large
shareholders in HK may be able to extract more
private