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Not a Coincidence: Sons-in-Law as Successors in Successful Japanese Family Firms

Author

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  • Blind, Georg
  • Lottanti von Mandach, Stefania

Abstract

Vikas Mehrotra, Randall Morck, Jungwook Shim and Yupana Wiwattanakantang (2013; hereafter MMSW) observe that listed family firms on average outperform non-family firms in Japan between 1962- 2000. They suggest that this finding can be explained by the practice of adult adoptions and, to a lesser degree, by arranged marriages. Their argument centers on a positive performance differential between non-blood and blood heirs. We cannot exactly replicate MMSW's research, because the authors do not share their data. However, we identify methodological concerns with the evidencing of this differential and show how conceptual considerations reduce their argument to that of arranged marriages. Regardless of any differential we propose another interpretation for the superior performance of businesses run by non-blood heirs and identify indicative evidence for this.

Suggested Citation

  • Blind, Georg & Lottanti von Mandach, Stefania, 2015. "Not a Coincidence: Sons-in-Law as Successors in Successful Japanese Family Firms," MPRA Paper 66695, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:66695
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    References listed on IDEAS

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    4. Mehrotra, Vikas & Morck, Randall & Shim, Jungwook & Wiwattanakantang, Yupana, 2013. "Adoptive expectations: Rising sons in Japanese family firms," Journal of Financial Economics, Elsevier, vol. 108(3), pages 840-854.
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    Cited by:

    1. Georg D. Blind & Stefania Lottanti von Mandach, 2021. "Of pride and prejudice: agent learning under sticky and persistent stereotype," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 16(2), pages 381-410, April.

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    More about this item

    Keywords

    Japan; family firms; outperformance; adoptions; arranged marriages;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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