Family Influence and Long-run IPO Performance
Date Issued
2012
Date
2012
Author(s)
Lin, Pei-San
Abstract
This study examines the family influence and firm’s long-run IPO performance by using ordinary least square method. The sample consists 493 companies which are listed on Taiwan Stock Exchange (TSE) during 1990 to 2006. We distinguish three degrees of family-owned businesses and nonfamily-owned businesses from high-tech and traditional industry by using F-PEC power scale. One-year, two-year until five-year post-IPO cumulative abnormal returns (CARs) are calculated for measuring long-run performance. Our results show that: (1) In family-owned businesses of high-tech industry, stronger family influence has more negative impact on long-run IPO performance. (2) In family-owned businesses of traditional industry, businesses of medium family influence perform better than other family-owned businesses. (3) In all businesses of high-tech industry, businesses of medium family influence perform worse than nonfamily-owned businesses, and the others family-owned businesses have no significant difference with nonfamily-owned businesses. (4) In all businesses of traditional industry, businesses of strong and low family influence perform worse than nonfamily-owned businesses, and businesses of medium family influence have no significant difference with nonfamily-owned businesses.
Subjects
Family-owned business
Family influence
long-run IPO performance
Type
thesis
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