Family ownership and acquisition behavior in publicly-traded companies

Strategic Management Journal

Volumn 31, Issue 2, 2010, Pages 201-223

  Miller, Danny ^a   Breton Miller, Isabelle Le ^a   Lester, Richard H ^b  

^a UNIVERSITY OF ALBERTA   (Canada)

^b TEXAS A AND M UNIVERSITY   (United States)

Author keywords

Acquisitions; Agency theory; Family business; Governance; Portfolio risk

Indexed keywords

AGENCY THEORY; BUSINESS RISKS; FAMILY BUSINESS; MANAGERIAL INCENTIVES; RISK PREFERENCE; SOCIAL CONTEXT;

MERGERS AND ACQUISITIONS;

EID: 73849121482     PISSN: 01432095     EISSN: 10970266     Source Type: Journal    
DOI: 10.1002/smj.802     Document Type: Article

References (70)

1. Amihud Y, Lev B. 1981. Risk reduction as a managerial motive for conglomerate mergers. Bell Journal of Economics 12 (2): 605-617.
2. Amihud Y, Lev B. 1999. Does corporate ownership structure affect its strategy towards diversification? Strategic Management Journal 20 (11): 1063-1069.
3. Anderson RC, Reeb D. 2003. Founding family ownership and firm performance: evidence from the S&P 500. Journal of Finance 58 (3): 1301-1328.
4. Anderson RC, Reeb D. 2004. Board composition: balancing family influence in S&P 500 firms. Administrative Science Quarterly 49 (2): 209-237.
5. Arregle J-L, Hitt M, Sirmon D, Véry P. 2007. The development of organizational social capital: attributes of family firms. Journal of Management Studies 44 (1): 73-95.
6. Beatty RP, Zajac EJ. 1994. Managerial incentives, monitoring and risk bearing: a study of executive compensation, ownership, and board structure in initial public offerings. Administrative Science Quarterly 39 (2): 313-335.
7. Bennedsen M, Nielson KM, Pérez-Gonzalez F, Wolfen-zon D. 2007. Inside the family firm: the role of families in succession decisions and performance. Quarterly Journal of Economics 122 (2): 647-691.
8. Berger P, Ofek E. 1995. Diversification's effect on firm value. Journal of Financial Economics 37 (1): 39-65.
9. Bertrand M, Schoar A. 2006. The role of family in family firms. Journal of Economic Perspectives 20 (2): 73-96.
10. Bloom N, Van Reenen J. 2007. Measuring and explaining management practices across firms and countries. Quarterly Journal of Economics 122 (4): 1351-1408.
11. Byrd JW, Hickman KH. 1992. Do outside directors monitor managers? Evidence from tender offer bids. Journal ofFinancial Economics 32 (2): 195-221.
12. Carney M. 2005. Corporate governance and competitive advantage in family-controlled firms. Entrepreneur-ship Theory and Practice 29 (3): 249-265.
13. Casson M. 1999. The economics of the family firm. Scandinavian Economic History Review 47 (1): 10-23.
14. Claessens S, Djankov S, Fan JPH, Lang LHP. 2002. Disentangling the incentive and entrenchment effects of large shareholdings. Journal of Finance 57 (6): 2741-2771.
15. Colli A. 2003. The History of Family Business, 1850-2000. Cambridge University Press: Cambridge, UK.
16. Comment R, Jarrell G. 1995. Corporate focus and stock market returns. Journal of Financial Economics 37 (1): 67-87.
17. Daily CM, McDougall PP, Covin JG, Dalton DR. 2002. Governance and strategic leadership in entrepreneurial firms. Journal of Management 28 (3): 387-412.
18. Daley L, Mehrotra V, Sivakumar R. 1997. Corporate focus and value creation: evidence from spinoffs. Journal of Financial Economics 45 (2): 257-281.
19. Dennis DJ, Dennis DK, Sarin A. 1997. Agency problems, equity ownership and corporate diversification. Journal of Finance 52 (1): 135-160.
20. Dreux DR IV. 1990. Financing family business: alternatives to selling out or going public. Family Business Review 3 (3): 225-243.
21. Fama E. 1965. Portfolio analysis in a stable Paretian market. Management Science 11 (3): 404-419.
22. Fama E, Jensen M. 1983. Separation of ownership and control. Journal of Law and Economics 26 (2): 301-325.
23. Fiss PC, Zajac EJ. 2004. The diffusion of ideas over contested terrain: the (non) adoption of a shareholder value orientation among German firms. Administrative Science Quarterly 49: 501-534.
24. Fleming G, Oliver B, Skovakis S. 2003. The valuation discount. Accounting and Finance 43 (2): 167-185.
25. Friedland R, Palmer D, Stenbeck M. 1990. The geography of corporate production. Sociological Forum 5 (3): 335-359.
26. Gersick K, Davis J, Hampton M, Lansberg I. 1997. Generation to Generation: Life Cycles of the Family Business. Harvard Business School Press: Boston, MA.
27. Gomez-Mejia LR, Haynes K, Nuñez-Nickel M, Jacobson K, Moyano-Fuentes J. 2007. Socioemotional wealth and business risks in family controlled firms. Administrative Science Quarterly 52 (1): 106-137.
28. Graham JR, Lemmon ML, Wolf JG. 2002. Does corporate diversification destroy wealth? Journal of Finance 57 (2): 695-720.
29. Hayward M, Hambrick D. 1997. Explaining the premiums paid for large acquisitions: evidence of CEO hubris. Administrative Science Quarterly 42 (1): 103-127.
30. James HS. 2006. Family Capitalism. Belknap Press: Cambridge, MA.
31. Jensen MC. 1986. Agency costs of free cash flow, corporate finance and takeovers. American Economic Review 76 (2): 323-329.
32. Jensen MC, Meckling WH. 1976. Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics 3 (4): 305-360.
33. Kang D, Sorensen A. 1999. Ownership organization and firm performance. Annual Review of Sociology 25: 121-144.
34. Khanna T, Yafeh Y. 2007. Business groups in emerging markets: paragons or parasites? Journal of Economic Literature 45 (2): 331-372.
35. Kirzner I. 1993. Competition and Entrepreneurship. University of Chicago Press: Chicago, IL.
36. Kroll M, Walters BA, Wright P. 2008. Board vigilance, director experience, and corporate outcomes. Strategic Management Journal 29 (4): 363-382.
37. Landes DS. 2006. Dynasties: Fortunes and Misfortunes of the World's Great Family Businesses. Viking: New York.
38. Lane PJ, Cannella AA Jr, Lubatkin MH. 1998. Agency problems as antecedents to unrelated mergers and diversification: Amihud and Lev reconsidered. Strategic Management Journal 19 (6): 555-578.
39. Lane PJ, Cannella AA Jr, Lubatkin MH. 1999. Ownership structure and corporate strategy: one question viewed from two different worlds. Strategic Management Journal 20 (11): 1077-1086.
40. Lang LHP, Poulsen A, Stulz R. 1995. Asset sales, firm performance and the agency costs of managerial discretion. Journal of Financial Economics 37 (1): 3-37.
41. Lang LHP, Stulz R. 1994. Tobin's q, corporate diversification and firm performance. Journal of Political Economy 102 (6): 1248-1280.
42. Liang K, Zeger S. 1986. Longitudinal data analysis using generalized linear models. Biometrika 73: 13-22.
43. Lintner J. 1965. Security prices, risk and maximal gains from diversification. Journal of Finance 20: 587-616.
44. Maksimovic V, Phillips G. 2001. The market for corporate assets: who engages in mergers and asset sales and are there efficiency gains? Journal of Finance 56 (6): 2019-2065.
45. Markowitz H. 1959. Portfolio Selection: Efficient Diversification of Investments. Wiley: New York.
46. Martin JD, Sayrak A. 2003. Corporate diversification and shareholder value: a survey of recent literature. Journal of Corporate Finance 9 (1): 37-57.
47. Maury B. 2006. Family ownership and firm performance: empirical evidence from Western European corporations. Journal of Corporate Finance 12 (2): 321-341.
48. Miller D. 1983. The correlates of entrepreneurship in three types of firms. Management Science 29 (7): 770-779.
49. Miller D, LeBreton-Miller I. 2005. Managing for the Long Run, Harvard Business School Press: Boston, MA.
50. Miller D, Le Breton-Miller I, Lester RH, Cannella AA Jr. 2007. Are family firms really superior performers? Journal of Corporate Finance 13 (4): 829-858.
51. Miller D, Le Breton-Miller I, Scholnick B. 2008. Stewardship vs. stagnation: an empirical comparison of small family and non-family businesses. Journal of Management Studies 45 (1): 50-78.
52. Miller D, Lee J, Chang S, Le Breton-Miller I. 2009. Filling the institutional void: the social behavior and performance of family versus non-family technology firms in emerging markets. Journal of International Business Studies 40 (5): 802-817.
53. Morck RK, Shleifer A, Vishny RW. 1990. Do managerial objectives drive bad acquisitions? Journal of Finance 45 (1): 31-48.
54. Morck RK, Wolfenzon D, Yeung B. 2005. Corporate governance, economic entrenchment, and growth. Journal of Economic Literature 43 (3): 655-720.
55. Palmer D, Barber B. 2001. Challengers, elites and owning families: a social class theory of corporate acquisitions in the 1960s. Administrative Science Quarterly 46 (1): 87-120.
56. Palmer D, Friedland R, Jennings PD, Powers ME. 1987. The economics and politics of structure. Administrative Science Quarterly 32 (1): 25-48.
57. Perez-González F. 2006. Inherited control and firm performance. American Economic Review 96 (5): 1559-1588.
58. Peterson MA. 2009. Estimating standard errors in finance panel data sets: comparing approaches. Review of Financial Studies 22 (1): 435-480.
59. Roll R. 1986. The hubris hypothesis of corporate takeovers. Journal of Business 59 (2): 197-216.
60. Schwert GW. 1996. Markup pricing in mergers and acquisitions. Journal of Financial Economics 41 (2): 153-192.
61. Sharpe WF. 1963. A simplified model for portfolio analysis. Management Science 9: 277-293.
62. Shleifer A, Vishny RW. 1997. A survey of corporate governance. Journal of Finance 52 (2): 737-783.
63. Singh H, Montgomery CA. 1987. Corporate acquisition strategies and economic performance. Strategic Management Journal 8 (4): 377-386.
64. Villalonga B, Amit R. 2006. How do family ownership, management, and control affect firm value? Journal of Financial Economics 80 (2): 385-417.
65. Volpin PF. 2002. Governance with poor investor protection: evidence from top executive turnover in Italy. Journal of Financial Economics 64 (1): 61-90.
66. Ward JL. 2004. Perpetuating the Family Business: 50 Lessons Learned from Long-Lasting, Successful Families in Business. Palgrave-Macmillan: New York.
67. Weston JF, Mitchell ML, Mulherin JH. 2004. Takeovers, Restructuring and Corporate Governance. Pearson-Prentice-Hall: Englewood Cliffs, NJ.
68. Wright P, Kroll M, Lad A, Van Ness B. 2002. The structure of ownership and corporate acquisition strategies. Strategic Management Journal 23 (1): 41-53.
69. Yin X, Zajac E. 2004. The strategy/governance fit relationship: theory and evidence in franchising arrangements. Strategic Management Journal 25 (4): 365-383.
70. Zhang G. 2005. Ownership concentration, risk aversion and the effect of financial structure on investment decisions. European Economic Review 42 (9): 1751-1778.