"How to get rid of a family firm?" Guest lecture by Professor Yupana Wiwattanakantang, National University of Singapore.

Summary:

The conventional view is that family controlled firms are rare in large and old firms. Little is known empirically about the evolution of the founding family’s ownership and control after IPO, however. The main problem is lack of long-term data. Yupana Wiwattanakantang together with co-authors have constructed a unique dataset of Japanese firms covering the period 1949–2000 allowing them to analyze the evolution of family control for several decades after IPO. Their results challenge the conventional view showing that even 40 years after IPO the family remains in control in almost 80% of the firms. 

They also find that family firms that survive are those that manage to solve both financial and family constrains, in particular via the family’s reputation, political networks, networks of financiers, and competent human resources.