Family control and stock market reactions to announcements of corporate venturing

Shao Chi Chang, Wann Yih Wu, Ying Jiuan Wong

Research output: Contribution to conferencePaper

Abstract

This study investigates whether family control affects the stock market reactions of new venturing. We found that with greater family control experienced more negative stock market reactions to venturing announcements. The results further indicated that the divergence of cash flow and voting rights was strongly and negatively correlated with announcement-period abnormal returns. The findings also indicated that institutional ownership had a significantly positive moderating effect suggesting that participation of institutional investors mitigated the negative influence of family control. The conclusions were robust under various measures of family control, and remained valid after controlling other influential factors for stock market reactions to venturing announcements.

Original languageEnglish
Publication statusPublished - 2008 Dec 1
Event68th Annual Meeting of the Academy of Management, AOM 2008 - Anaheim, CA, United States
Duration: 2008 Aug 82008 Aug 13

Other

Other68th Annual Meeting of the Academy of Management, AOM 2008
CountryUnited States
CityAnaheim, CA
Period08-08-0808-08-13

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Management of Technology and Innovation

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    Chang, S. C., Wu, W. Y., & Wong, Y. J. (2008). Family control and stock market reactions to announcements of corporate venturing. Paper presented at 68th Annual Meeting of the Academy of Management, AOM 2008, Anaheim, CA, United States.