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Dynastic control without ownership: Evidence from post-war Japan

Author

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  • Bennedsen, Morten
  • Mehrotra, Vikas
  • Shim, Jungwook
  • Wiwattanakantang, Yupana

Abstract

Dynastic-controlled firms are led by founding-family CEOs while the family owns an insignificant share of equity (defined as less than 5%). They represent 7.4% of listed firms in post-war Japan, include well-known firms such as Casio, Suzuki, and Toyota, and are often grouped with widely held firms in the literature. These firms differ in key performance measures from both traditional family firms and non-family firms, and evolve from the former as equity-financed growth dilutes family ownership over time. In turn, the transition from dynastic control to non-family status is driven by a diminution of family legacy and talent.

Suggested Citation

  • Bennedsen, Morten & Mehrotra, Vikas & Shim, Jungwook & Wiwattanakantang, Yupana, 2021. "Dynastic control without ownership: Evidence from post-war Japan," Journal of Financial Economics, Elsevier, vol. 142(2), pages 831-843.
    • Handle: RePEc:eee:jfinec:v:142:y:2021:i:2:p:831-843
    DOI: 10.1016/j.jfineco.2021.06.018
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    References listed on IDEAS

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    Cited by:

    1. Yeh, Yin-Hua & Liao, Chen-Chieh, 2021. "Are non-family successors all the same? Inside-promoted vs. outside-sourced," Journal of Corporate Finance, Elsevier, vol. 71(C).

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    More about this item

    Keywords

    Family control; Ownership; Succession;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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