| Summary: | 碩士 === 國立中央大學 === 人力資源管理研究所 === 104 === Nowadays, succession planning is a crucial issue to family businesses all around the world, and there are only few cases of successful family successions. How to ensure a smooth transition in succession plan is a critical issue for many family businesses to face as well as a key determinant for sustainable development. Corporate governance is often seen as important information source for investors to make investment decision; and it can also ease the agency problems within the organizations. This study used data of public traded family businesses within Taiwan from 2006 to 2014, using event study to analyze their leader changing events, including supervision (board size, the number of independent directors, proportion of foreign investment) and family control (family voting right, family cash flow right, family board). The purpose of this study is to understand the reaction of stock market to the change of leader in firms with different corporate governance.
Analyzed result showed that there was negatively significant of corporates’ cumulative abnormal return (CAR) in 12 days before and 7 days after the happened event. For further study, this time frame was divided into 6 periods of time, using regression to study the relationship between succession candidates, corporate governance (supervision and family control) and these time frames. Results demonstrated that the variation of candidates is positively significant in only five periods and the variation of supervision is positively significant, but the variation of family control is negatively significant.
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