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Full-Text Articles in Business
The Resilience Of Family Controlled Business Groups: Survival Of The Unfit, Nirmalya Kumar, Phanish Puranam
The Resilience Of Family Controlled Business Groups: Survival Of The Unfit, Nirmalya Kumar, Phanish Puranam
Research Collection Lee Kong Chian School Of Business
The COVID crisis has demonstrated that family controlled business groups, usually criticized as being inefficient and diverse, have higher survival rates for precisely these reasons.
How Inheritance Law Affects Family Firm Performance: Evidence From A Natural Experiment, Yong Kyu Gam, Min Jung Kang, Junho Park, Hojong Shin
How Inheritance Law Affects Family Firm Performance: Evidence From A Natural Experiment, Yong Kyu Gam, Min Jung Kang, Junho Park, Hojong Shin
Research Collection Lee Kong Chian School Of Business
We argue that changes in the inheritance system affect incentives leading to sibling rivalry among descendants and therefore have a material impact on family firm performance. Using South Korea's 1991 inheritance law reform that stipulates the equal distribution of a deceased person's property to descendants, we find that the performance and operating growth rate in family firms show significant enhancement compared with those of nonfamily firms. Moreover, the positive effects are greater for family firms that undergo a business succession with multiple sons and married daughters. Overall, our results suggest that changing to equal bequests of inheritance has a positive …