Publication Type
Journal Article
Version
acceptedVersion
Publication Date
5-2020
Abstract
China’s A-shares family listed companies are facing a period of high intergenerational succession. This has attracted the attention and research of many scholars. The existing studies mainly focus on the motives, methods, and influencing factors of family business’ intergenerational succession, and there are few studies involving the reaction of the capital markets. This article takes 45 listed family businesses as samples and uses the synthetic control method to examine the impact and the degree of influence that intergenerational succession has on stock price movements. Thereafter, a difference-in-differences estimation is conducted to test for robustness. At the conclusion of our research, we find that intergenerational succession has a significant negative effect on the stock price of listed companies.
Keywords
Family Business, intergenerational succession, synthetic control method, capital market reaction
Discipline
Asian Studies | Corporate Finance | Entrepreneurial and Small Business Operations
Publication
Applied Economics Letters
Volume
27
Issue
8
First Page
667
Last Page
672
ISSN
1350-4851
Identifier
10.1080/13504851.2019.1644424
Publisher
Taylor and Francis
Embargo Period
5-26-2021
Citation
ZOU, Kunlun; WU, Rong; and CHEN, Pu.
Does intergeneration succession influence stock prices of family businesses?. (2020). Applied Economics Letters. 27, (8), 667-672.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6722
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/10.1080/13504851.2019.1644424
Included in
Asian Studies Commons, Corporate Finance Commons, Entrepreneurial and Small Business Operations Commons