A tale of two managers: The effects of family manager on earnings surprise and investors’ reactions
- 주제(키워드) Family Business , Family CEO , Audience Expectation , Investor Expectation
- 발행기관 고려대학교 대학원
- 지도교수 김희천
- 발행년도 2016
- 학위수여년월 2016. 2
- 학위구분 석사
- 학과 대학원 경영학과
- 세부전공 경영관리
- 원문페이지 40 p
- 실제URI http://www.dcollection.net/handler/korea/000000066085
- 본문언어 영어
- 제출원본 000045866494
초록/요약
This research is aimed at understanding how investors have different expectations toward firms run by family CEO and non-family CEO. In Korea, family CEOs, chaebols, have long been seen as paragon of entrepreneurship and long-term investment, leading rapid economic development. However, in recent years, such view has changed to scrutiny as they lost legitimacy through inter-generational succession. Whether expectations toward family CEOs are still higher than non-family CEOs based on their past success or are lower than non-family CEOs due to recent scrutiny is unclear. In order to attempt to reveal difference in investor expectations and reactions between two groups of CEOs, relevant literature from family business and romance of leadership were reviewed to derive hypotheses, which were subsequently tested empirically by utilizing material earnings surprise data and event study of 132 firms between 2011 and 2014. Using panel logit analysis of material earnings surprise, it was revealed that firms run by family CEOs have lower tendency to announce positive material earnings surprises and higher tendency to announce negative material earnings surprises compared to non-family CEOs. This result shows that investors hold consistently higher expectations for family CEOs compared to non-family CEOs. Furthermore, 3-day window event study analysis on announcement of annual report revealed that investors reacted less negatively toward negative earnings surprises produced by family CEOs compared to non-family CEOs. These results shows that investors see performance expectation of firms run by family CEOs more reliable than those run by non-family CEOs. In addition, it was shown that despite recent scrutiny toward family CEOs, based on their past success, investors still hold higher performance expectation, and find family CEOs to be more normative form of CEO than non-family CEO.
more목차
1. Introduction………………………………………………………………………………………1
2. Literature Review and Hypotheses………………………………………………………………2
2-1. Research Setting: Material Earnings Surprise as Unexpected Outcomes…………………..2
2-2. Family Manager…………………………………………………………………………….3
3. Investors’ Reactions to Earnings Surprises……………………………………………………...7
3-1. Romance of Leadership……………………………………………………………………..7
4. Methods………………………………………………………………………………………...11
4-1. Sample and Data…………………………………………………………………………...11
4-2. Variables…………………………………………………………………………………...11
4-2-1. Dependent Variables…..…………………………………………………………..11
4-2-2. Independent Variable……………………………………………………………...13
4-2-3. Control Variables………………………………………………………………….14
4-2-4. Methodologies…………………………………………………………………….15
5. Results………………………………………………………………………………………….15
6. Discussion………………………………………………………………………………………17
6-1. Contributions to Family Business Research……………………………………………….24
6-2. Limitations…………………………………………………………………………………25
Reference……………………………………………………………………………………………26
