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The dynamics of voting ownership in lone-founder, family-founder, and heir firms

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  • Achleitner, Ann-Kristin
  • Kaserer, Christoph
  • Kauf, Tobias

Abstract

We examine ownership dynamics in listed founding-family firms over the period 1996–2008. In order to enlarge the understanding of persistence of ownership influence, we analyze determinants of change in the light of family-firm heterogeneity. We detect ownership decreases and increases, alike. A Large Drop of ownership (at least −2.5%) occurs 4 times as often as a Large Increase. The mean negative change is −3.1% (median 0.0%), positive changes average 0.6% (median 0.0%). Foremost, owner identity characteristics and management board participation of individual blockholders explain the likelihood of ownership dynamics. Specifically, Lone Founder Firms show the most dynamical ownership structures in all regression scenarios. Heir Firms have the most robust ownership structure and are – on average – majority controlled by a family. They are less likely to reduce their ownership influence. Family Founder Firms are only changing ownership when the family forgoes to comply with the blocking minority of 25% plus one share further. We interpret all results in the light of identity, agency, stewardship, and financial theory. Thereby, an unbalanced panel (2529 firm years) of founding-family firms listed in the German CDAX market index at Frankfurt Stock Exchange (FSE) represents the empirical foundation.

Suggested Citation

  • Achleitner, Ann-Kristin & Kaserer, Christoph & Kauf, Tobias, 2012. "The dynamics of voting ownership in lone-founder, family-founder, and heir firms," Journal of Family Business Strategy, Elsevier, vol. 3(2), pages 79-96.
    • Handle: RePEc:eee:fambus:v:3:y:2012:i:2:p:79-96
    DOI: 10.1016/j.jfbs.2012.02.003
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    2. Jin-hui Luo & Xue Li & Linda C. Wang & Yue Liu, 2021. "Owner type, pyramidal structure and R&D Investment in China’s family firms," Asia Pacific Journal of Management, Springer, vol. 38(3), pages 1085-1111, September.
    3. Goel, Sanjay & Mazzola, Pietro & Phan, Phillip H. & Pieper, Torsten M. & Zachary, Ramona K., 2012. "Strategy, ownership, governance, and socio-psychological perspectives on family businesses from around the world," Journal of Family Business Strategy, Elsevier, vol. 3(2), pages 54-65.
    4. Markin, Erik T. & Skorodziyevskiy, Vitaliy & Zhu, Lina & Chrisman, James J. & Fang, Hanqing “Chevy”, 2022. "Lone-founder firms in China: Replicating Miller et al. (2007) in a different context," Journal of Family Business Strategy, Elsevier, vol. 13(4).
    5. Lozano-Reina, Gabriel & Sánchez-Marín, Gregorio & Baixauli-Soler, J. Samuel, 2022. "Say-on-Pay voting dispersion in listed family and non-family firms: A panel data analysis," Journal of Family Business Strategy, Elsevier, vol. 13(1).
    6. Lozano, M. Belén & Martínez, Beatriz & Pindado, Julio, 2016. "Corporate governance, ownership and firm value: Drivers of ownership as a good corporate governance mechanism," International Business Review, Elsevier, vol. 25(6), pages 1333-1343.
    7. Karlsson, Johan, 2018. "Does regional context matter for family firm employment growth?," Journal of Family Business Strategy, Elsevier, vol. 9(4), pages 293-310.

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