The Dynamics of Family Controlled Firms: Empirical Analysis using Long-term Japanese Data

2017 Fiscal Year Final Research Report

• Project/Area Number: 15K03563
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Money/ Finance
• Research Institution: Kyoto Sangyo University
• Principal Investigator: SHIM Jungwook 京都産業大学, 経済学部, 准教授 (70706499)
• Research Collaborator: YOSHIKAWA Toru Singapore Management University, Lee Kong Chian School of Business, Professor ; BENNEDSEN Morten University of Copenhagen (INSEAD), Copenhagen Business School (Economics and Political Science), Professor (Professor) ; MEHROTRA Vikas University of Alberta, Alberta School of Business, Professor ; WIWATTANAKANTANG Yupana National University of Singapore, Business School, Associate Professor
• Project Period (FY): 2015-04-01 – 2018-03-31
• Keywords: Family Firms / Family Business / Ownership Structure / Board Interlocks

Outline of Final Research Achievements

It is widely thought that family control loosens as firms grow larger over time. Our analysis, based on a comprehensive sample of exchange listed family firms in post-war Japan, challenges this conventional view. We document that it is common that families keep control over board and management even when their ownership stake is largely diluted. In the second, family and financial constraints jointly determine the dynamic pattern of ownership dilution and family control. The family’s intangible assets such as reputation and competent family human resources correlate with family longevity.

Free Research Field

Family Firms, Family Business