The Value of Marriage to Family Firms

Journal of Financial and Quantitative Analysis, 2013, 48 (2), 611-636

Posted: 19 May 2021

See all articles by Yupana Wiwattanakantang

Yupana Wiwattanakantang

National University of Singapore - Department of Finance ; European Corporate Governance Institute (ECGI)

Pramuan Bunkanwanicha

ESCP Business School

Joseph P. H. Fan

The Chinese University of Hong Kong (CUHK) - School of Accountancy

Date Written: April 19, 2013

Abstract

This paper presents the first empirical evidence showing that the marriage of a member of the controlling family adds value to public corporations. The results, based on a uniquely comprehensive data set from Thailand, show that the family firm’s stock price increases when the partner is from either a prominent business or a political family. Abnormal returns tend to be higher for firms whose operation depends on extensive networks. In contrast, marriages to ordinary citizens are not associated with any abnormal returns. These findings are generally supportive of the value of networks in general and marriage in particular.

Keywords: Family firm, Succession, Corporate Governance, M&A, Thailand

JEL Classification: G3, G15, G32, G38, J12, N25

Suggested Citation

Wiwattanakantang, Yupana and Bunkanwanicha, Pramuan and Fan, Po Hung Joseph P. H., The Value of Marriage to Family Firms (April 19, 2013). Journal of Financial and Quantitative Analysis, 2013, 48 (2), 611-636, Available at SSRN: https://ssrn.com/abstract=3849189

Yupana Wiwattanakantang (Contact Author)

National University of Singapore - Department of Finance ( email )

Business School
Mochtar Riady Building #7-44, 15 Kent Ridge Dri
Singapore, 117592
Singapore
65-6516-1912 (Phone)

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Pramuan Bunkanwanicha

ESCP Business School ( email )

79 Avenue de la Republique
Paris, 75011
France

Po Hung Joseph P. H. Fan

The Chinese University of Hong Kong (CUHK) - School of Accountancy ( email )

Shatin, N.T.
Hong Kong
(852) 26097839 (Phone)
(852) 26035114 (Fax)

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