Session 230

Ownership Determinants and Consequences

Track F

Date: Monday, October 12, 2009

 

Time: 15:45 – 17:00

Common Ground

Room: Meeting Room 16


Facilitator:
Jean McGuire, Louisiana State University

Title: CEO Succession in Family Controlled Firms: The Impact of Leaving and Succeeding CEOs Characteristics on Firm Performance

Authors

  • Alessandro Minichilli, Bocconi University
  • Guido Corbetta, Bocconi University
  • Mattias Nordqvist, Jonkoping University

Abstract: Despite considerable attention from both strategic management and family business scholars, CEO succession research is far from being conclusive. This is especially true in family controlled firms, in which family membership, family relations and ‘outsiderness’ of successors have a peculiar influence on firm results. Further, overlaps between managerial and ownership positions in such firms is likely to make CEO succession more traumatic. In this article we rely on a sample of 167 firms over 10 years to explore relationships between both CEO succession per se, and ‘leaving’ and ‘succeeding’ CEOs’ characteristics on financial performance and firm leverage. We also test the impact of TMT’s turnover following a succession. Preliminary results support our hypotheses, suggesting that CEO succession should be carefully planned in family firms.

Title: Determinants of Ownership Concentration

Authors

  • Christian Weiss, European Business School

Abstract: Building on the work of Demsetz/Lehn (1985), Hansmann (1996) has suggested that an analysis of the allocation of ownership rights needs to take into account all costs associated with and influenced by a firm’s ownership structure. However, his theory has not been tested empirically in a comprehensive fashion. Therefore, I construct a holistic framework considering the complete business operations of a firm to identify the key drivers of ownership concentration. Using a sample of 1939 firms from eight industries across eleven countries I find that the risk and value of a firm, the shareholder protection and the uncertainty avoidance significantly influence the ownership concentration. The results suggest analyzing the relative importance of firm-, industry-, and country specific factors of ownership concentration to gain further insights.

Title: Exploring What Goes Into Corporate Reputation: Decomposing Firm, Industry and Time Factors

Authors

  • Sujit Sur, Dalhousie University
  • Carol-Ann Tetrault Sirsly, Carleton University

Abstract: Reputation is an embedded intangible asset that cannot be distinctly valued or traded. The ambiguity as to how reputation is derived in our uncertain world confounds attempts to fully understand its causal factors or antecedents. Furthermore, as firm reputation is nested within industry reputation, both evolving over time, it is imperative to address these factors simultaneously. With a random coefficient modeling technique we utilize a ten year sample of Fortune’s Most Admired Companies to decompose the change in corporate reputation over time, and between firms and industries. Factors we examine include financial and market performance, corporate governance and ownership characteristics. We find that half the variation in reputation is firm specific, yet the commonly accepted factors explain less than 26% of the variation.

Title: Ownership Structure and Divestiture Performance: Evidences From Thirteen European Countries

Authors

  • Enzo Peruffo, LUISS Guido Carli University
  • Raffaele Oriani, LUISS Guido Carli University
  • Alessandra Perri, Ca' Foscari University of Venice

Abstract: This article analyses how ownership structure affects divestiture performance, using an Agency theoretical framework. In the light of the conflict between shareholders and managers, ownership concentration should drive divestiture performance, thanks to the monitoring power of owners on managers. However, we argue that the relationship between concentration and divestiture performance depends on the identity of the blockholder and on its propensity to extract private benefits, to the detriment of minority shareholders. Following Faccio and Lang (2002) approach, we reconstruct the identity and the control stake of the ultimate owner, and test our hypotheses on a sample of 263 divestiture transactions from thirteen European countries.

Title: Ownership, Identity and Shareholder Behavior: A Grounded Theory

Authors

  • Katarina Sikavica, University of Munich
  • Anja Tuschke, University of Munich

Abstract: Arguing that current theorizing on organizational ownership falls short of explaining shareholder behavior in all its facets, we adopt a grounded theory approach to explore how shareholder identities impact on shareholders’ involvement in organizations. We conduct semi-structured interviews and use qualitative data analysis techniques in order to develop a novel typology of shareholder identities. We find that shareholders exhibiting different psychological dispositions towards ownership of the organization have different individual and social identities. These identities impact on the way how shareholders relate to the organization and thus on the extent to which they become involved in organizational decisions.

Title: Shareholder-Specific Resources, Ownership Structure and Firm Performance: Empirical Evidence from China

Authors

  • Hao Cui, Sun Yat-Sen University
  • Changqi Wu, Peking University
  • Dean Xu, Monash University

Abstract: This study explores the relationship between the largest shareholder-specific resources and the performance of such firms. Our theoretic model shows that the largest shareholder-specific resource is positively associated with the economic performance of the listed firms in China although this relationship is contingent on the ownership structure of the firms. We use the technical efficiency frontier approach to measure the valuable and inimitable resources of the largest shareholders.

All Sessions in Track F...

Sun: 10:00 – 11:30
Session 260: Writing Workshop for Doctoral Students and Junior Faculty
Sun: 13:00 – 14:30
Session 261: Shareholder Primacy and Corporate Policy
Sun: 15:00 – 16:30
Session 262: The Role of Government in M&A Activity
Sun: 16:30 – 17:30
Session 310: Corporate Strategy & Governance, IG Meeting
Mon: 12:45 – 14:00
Session 198: Perspectives on CEO Succession
Session 228: Business Groups, Alliances, and Contracts
Mon: 15:45 – 17:00
Session 229: Alliances and Corporate Strategy
Session 230: Ownership Determinants and Consequences
Mon: 17:15 – 18:30
Session 194: CEOs and Top Management Teams
Session 197: Diversity, Identity, and Corporate Governance
Session 233: Top Executives and Directors in Organizational Dynamics
Tue: 10:00 – 11:15
Session 199: Executive Compensation
Session 200: Social Psychological Perspectives of CEOs
Tue: 11:30 – 12:45
Session 195: Competitive Dynamics of Business Groups
Session 234: Constraints and Catalysts on Corporate Growth
Tue: 14:30 – 15:45
Session 226: Relatedness, Dominant Logics, and Other Diversification Logics
Session 231: Institutions and Agents
Wed: 10:00 – 11:15
Session 227: Corporate Strategy & Diversification
Session 232: Stakeholders in the Corporate Governance Equation
Wed: 11:30 – 12:45
Session 196: Behavioral Perspectives on Boards of Directors
Session 225: Acquisitions and Corporate Strategy


Strategic Management Society

Washington DC