Publication Type
Journal Article
Version
publishedVersion
Publication Date
3-2010
Abstract
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.
Discipline
Asian Studies | Entrepreneurial and Small Business Operations | Strategic Management Policy
Research Areas
Strategy and Organisation
Publication
Journal of Management Studies
Volume
47
Issue
2
First Page
274
Last Page
295
ISSN
0022-2380
Identifier
10.1111/j.1467-6486.2009.00891.x
Publisher
Wiley
Citation
YOSHIKAWA, Toru and RASHEED, Abdul A..
Family control and ownership monitoring in family-controlled firms in Japan. (2010). Journal of Management Studies. 47, (2), 274-295.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/2907
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1111/j.1467-6486.2009.00891.x
Included in
Asian Studies Commons, Entrepreneurial and Small Business Operations Commons, Strategic Management Policy Commons