Dynastic Control Without Ownership: Evidence from Post-War Japan

Dynastic Control Without Ownership: Evidence from Post-War Japan

Morten Bennedsen, Vikas Mehrotra, Jungwook Shim, Yupana Wiwattanakantang

Series number :

Serial Number: 
705/2020

Date posted :

October 27 2020

Last revised :

October 27 2020
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Keywords

  • Family control • 
  • ownership • 
  • succession

Dynastic-controlled firms are led by founding family CEOs while the family owns an insignificant share of equity (defined as less than five percent). 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 the founding family’s ownership over time. In turn, the transition from dynastic control to non-family status is driven by a diminution of strategic family resources.

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Authors

Professor
Real name:
Vikas Mehrotra
Alberta School of Business
Real name:
Jungwook Shim