| Summary: | 博士 === 國立成功大學 === 企業管理學系碩博士班 === 96 === This study investigates the relationship between family-controlled business and economic impact of corporate entrepreneurship (CE). Prior studies suggested that
family-controlled business might involve both costs and benefits, and the results so far have
been inconclusive. With a large proportion of listed corporations has a family-controlled
ownership structure, we found that such businesses in Taiwan experienced significantly more
negative stock market reactions to CE announcements. The empirical results further indicated
that the divergence of cash flow and voting rights was strongly and negatively associated with
announcement-period market reactions, suggesting that market participants may perceive
family-controlled businesses as using CE activities to pursue self-interest at the expense of
other shareholders. We also found that the participation of institutional ownership mitigated the
negative influence of family control. Moreover, the evidence of post-announcement operating
performance strengthened the finding that family control did indeed harm the value creation
of CE announcements. The conclusions were robust under various measures of family control,
and remained valid after controlling other influential factors to CE announcements.
|
|---|
