Family Control and Ownership Monitoring in Family-Controlled Firms in Japan

By Toru Yoshikawa, Abdul Rasheed. 2010

188 citations recorded by the source corpus.

This paper focuses on a type of firms that have been traditionally neglected in both family business and governance research, namely, family-controlled, publicly-listed firms. Although principal–agent conflicts may be less prevalent in such firms, family control can potentially give rise to principal–principal conflicts, leading to expropriation of the wealth of minority owners by family owners. Superior firm performance and the willingness to distribute the profits through dividend payments would suggest the absence of such expropriation. Based on a sample of 210 OTC firms in Japan, we examined the relationships between family control and dividend payouts and profitability. Our results indicate that family control was positively related to dividend payouts. Further, we found that while foreign ownership interacted with family control to reduce dividend payouts and increase profitability, bank ownership did not have such an effect.

Subfields: Accounting, Organizational Behavior and Human Resource Management

View Paper: https://www.semanticscholar.org/paper/e78fca7a0d3749068285f471d88ffe75500f5075

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. A. Michiels
2. B. Boyd
3. A. Solarino
4. Vincent Molly

In Organizational Behavior and Human Resource Management

1. A. Michiels
2. A. Solarino
3. B. Boyd
4. Vincent Molly
5. Herman Aguinis

Citations in the corpus

• Financing Decisions in Family Businesses: A Review and Suggestions for Developing the Field (2017, background): “(2008) Equity Asymmetric information between shareholders Supply FB/NFB Italy Voordeckers and Steijvers (2006) Debt Asymmetric information between shareholders and bondholders Supply FB/NFB Belgium Waisman (2013) Debt Asymmetric information between shareholders and bondholders Supply FB/NFB USA Walk”
• Markets, Hierarchies, and Families: Toward a Transaction Cost Theory of the Family Firm (2010, unknown): “…the mounting empirical evidence that family firms survive and thrive within and across very different host societies (Anderson & Reeb, 2004; La Porta et al., 1999; Yoshikawa & Rasheed, 2010) and in direct competition with organizations that more closely conform to Chandlerian managerial ideals.”
• Ownership of Corporations (2016, background): “Finally, a number of other theories have been adopted to explain the effect of ownership types on the firm’s outcomes—for example, stewardship theory (Yoshikawa & Rasheed, 2010), or social network theory (Zhou & Delios, 2012).”