New Perspectives on Equity Carve-outs: Organizational Characteristics and Culture

2020 Fiscal Year Final Research Report

• Project/Area Number: 19K23215
• Research Category: Grant-in-Aid for Research Activity Start-up
• Allocation Type: Multi-year Fund
• Review Section: 0107:Economics, business administration, and related fields
• Research Institution: Ritsumeikan Asia Pacific University
• Principal Investigator: FAN PENGDA 立命館アジア太平洋大学, 国際経営学部, 助教 (60847391)
• Project Period (FY): 2019-08-30 – 2021-03-31
• Keywords: 子会社上場 / 役員兼任 / 株主価値 / 内部労働市場

Outline of Final Research Achievements

This study proposes an internal labor market hypothesis of equity carve-out by examining the functions of dual directors who serve simultaneously on the parent as well as subsidiary boards. We find evidence that the Japanese stock market reacts positively to the presence of dual directors who hold CEO positions in carve-out subsidiaries, especially in the case of younger directors. We also find that the carve-out subsidiaries led by young dual directors tend to outperform their matched counterparts in the long run. In contrast, when dual directors do not hold the CEO position, we find no evidence that the stock market reacts positively to them. The results of this study suggest that dual directors can enhance shareholder wealth when the internal labor market discipline works well.

Free Research Field

コーポレートファイナンス

Academic Significance and Societal Importance of the Research Achievements

本研究の意義は、日本企業はなぜ子会社を上場させるか、また、なぜ長期間にわたり、この資本関係を維持するのか、そして、なぜ親会社の株主価値が向上できるのかを解明することにある。こういった上場子会社の経営者でありながら、親会社の内部取締役を兼任する内部者間の競争が親会社と子会社の価値向上に貢献できるという仮説を立てたことが、本研究の独創的な点である。
さらに、本研究は、日本における子会社上場への理解を深めるとともに、社外取締役を義務化すべきかどうかという論争にも新たな見解を提示することできた。