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The Value of Marriage to Family Firms

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  • Bunkanwanicha, Pramuan
  • Fan, Joseph P. H.
  • Wiwattanakantang, Yupana

Abstract

This paper presents the first empirical evidence showing that the marriage of a member of the controlling family adds value to public corporations. The results, based on a uniquely comprehensive data set from Thailand, show that the family firm’s stock price increases when the partner is from either a prominent business or a political family. Abnormal returns tend to be higher for firms whose operation depends on extensive networks. In contrast, marriages to ordinary citizens are not associated with any abnormal returns. These findings are generally supportive of the value of networks in general and marriage in particular.

Suggested Citation

  • Bunkanwanicha, Pramuan & Fan, Joseph P. H. & Wiwattanakantang, Yupana, 2013. "The Value of Marriage to Family Firms," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 48(2), pages 611-636, April.
    • Handle: RePEc:cup:jfinqa:v:48:y:2013:i:02:p:611-636_00
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    1. La organización de la empresa familiar y confianza durante una crisis
      by admin in Nada Es Gratis on 2018-11-28 06:07:56

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    Cited by:

    1. Jameson, Melvin & Prevost, Andrew & Puthenpurackal, John, 2014. "Controlling shareholders, board structure, and firm performance: Evidence from India," Journal of Corporate Finance, Elsevier, vol. 27(C), pages 1-20.
    2. Marco Cucculelli & Valentina Peruzzi & Alberto Zazzaro, 2016. "Relational capital in lending relationships: Evidence from European family firms," CERBE Working Papers wpC12, CERBE Center for Relationship Banking and Economics.
    3. Bona-Sánchez, Carolina & Pérez-Alemán, Jerónimo & Santana-Martín, Domingo Javier, 2019. "Earnings credibility in politically connected family firms," The British Accounting Review, Elsevier, vol. 51(3), pages 316-332.
    4. Maria Rosaria Carillo & Vincenzo Lombardo & Alberto Zazzaro, 2019. "The rise and fall of family firms in the process of development," Journal of Economic Growth, Springer, vol. 24(1), pages 43-78, March.
    5. Jaskiewicz, Peter & Combs, James G. & Rau, Sabine B., 2015. "Entrepreneurial legacy: Toward a theory of how some family firms nurture transgenerational entrepreneurship," Journal of Business Venturing, Elsevier, vol. 30(1), pages 29-49.
    6. Murro, Pierluigi & Peruzzi, Valentina, 2019. "Family firms and access to credit. Is family ownership beneficial?," Journal of Banking & Finance, Elsevier, vol. 101(C), pages 173-187.
    7. Nzinga Broussard & Ralph Chami & Gregory Hess, 2015. "(Why) Do self-employed parents have more children?," Review of Economics of the Household, Springer, vol. 13(2), pages 297-321, June.
    8. Carney, Michael & Duran, Patricio & van Essen, Marc & Shapiro, Daniel, 2017. "Family firms, internationalization, and national competitiveness: Does family firm prevalence matter?," Journal of Family Business Strategy, Elsevier, vol. 8(3), pages 123-136.
    9. Xu, Nianhang & Yuan, Qingbo & Jiang, Xuanyu & Chan, Kam C., 2015. "Founder's political connections, second generation involvement, and family firm performance: Evidence from China," Journal of Corporate Finance, Elsevier, vol. 33(C), pages 243-259.
    10. Amore, Mario Daniele & Miller, Danny & Le Breton-Miller, Isabelle & Corbetta, Guido, 2017. "For love and money: Marital leadership in family firms," Journal of Corporate Finance, Elsevier, vol. 46(C), pages 461-476.
    11. Bennedsen, Morten & Fan, Joseph P.H. & Jian, Ming & Yeh, Yin-Hua, 2015. "The family business map: Framework, selective survey, and evidence from Chinese family firm succession," Journal of Corporate Finance, Elsevier, vol. 33(C), pages 212-226.
    12. Natenapha Yabushita & Akira Suehiro, 2014. "Family business groups in Thailand: coping with management critical points," Asia Pacific Journal of Management, Springer, vol. 31(4), pages 997-1018, December.
    13. Marco Cucculelli & Valentina Peruzzi & Alberto Zazzaro, 2019. "Relational capital in lending relationships: evidence from European family firms," Small Business Economics, Springer, vol. 52(1), pages 277-301, January.
    14. Fan, Joseph P.H. & Leung, Winnie S.C., 2020. "The impact of ownership transferability on family firm governance and performance: The case of family trusts," Journal of Corporate Finance, Elsevier, vol. 61(C).
    15. Li, Jiatao & Li, Peixin & Wang, Baolian, 2016. "Do cross-border acquisitions create value? Evidence from overseas acquisitions by Chinese firms," International Business Review, Elsevier, vol. 25(2), pages 471-483.
    16. Liu, Qigui & Luo, Tianpei & Tian, Gary Gang, 2015. "Family control and corporate cash holdings: Evidence from China," Journal of Corporate Finance, Elsevier, vol. 31(C), pages 220-245.

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