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Does ownership matter in mergers? A comparative study of the causes and consequences of mergers by family and non-family firms

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  • Shim, Jungwook
  • Okamuro, Hiroyuki

Abstract

Although the family firm is the dominant type among listed corporations worldwide, few papers investigate the behavioral differences between family and non-family firms. We analyze the differences in merger decisions and the consequences between them by using a unique Japanese dataset from a period of high economic growth. Empirical results suggest that family firms are less likely to merge than non-family firms are. Moreover, we find a positive relationship between pre-merger family ownership and the probability of mergers. Thus, ownership structure is an important determinant of mergers. Finally, we find that non-family firms benefit more from mergers than family firms do.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Banking & Finance.

Volume (Year): 35 (2011)
Issue (Month): 1 (January)
Pages: 193-203

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Handle: RePEc:eee:jbfina:v:35:y:2011:i:1:p:193-203

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Web page: http://www.elsevier.com/locate/jbf

Related research

Keywords: Merger Family firm Family ownership;

References

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Citations

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Cited by:
  1. Chi, Jing & Sun, Qian & Young, Martin, 2011. "Performance and characteristics of acquiring firms in the Chinese stock markets," Emerging Markets Review, Elsevier, vol. 12(2), pages 152-170, June.
  2. Bouzgarrou, Houssam & Navatte, Patrick, 2013. "Ownership structure and acquirers performance: Family vs. non-family firms," International Review of Financial Analysis, Elsevier, vol. 27(C), pages 123-134.
  3. Park, Minjung, 2013. "Understanding merger incentives and outcomes in the US mutual fund industry," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4368-4380.
  4. Hien Thu Tran & Enrico Santarelli, 2013. "Capital Constraints and the Performance of Entrepreneurial Firms in Vietnam," Working Paper Series 32_13, The Rimini Centre for Economic Analysis.

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