Wharton-SMU Research Centre

Guest Speaker:

Raffi Amit
Robert B. Goergen Professor of Entrepreneurship; Academic Director, and Chairman of the Executive Committee, The Wharton Global Family Alliance, The Wharton School, University of Pennsylvania.

Date & Venue:
Date: 7 June 2007, Thursday
Time: 4.00pm-5.30pm
Executive Media Theatre, Level 5, Administration Building

Singapore Management University
81 Victoria Street, Singapore 188065
( Location Map )

Topic:
How are U.S. Family Firms Controlled? 

Abstract:
In large U.S. corporations, founding families are the only blockholders whose control rights on average exceed their cash flow rights. We analyze how families achieve this separation between cash-flow and control rights, and at what cost. We find that indirect ownership through trusts, foundations, limited partnerships, and other corporations is prevalent but rarely creates a wedge between cash-flow and control rights. The primary sources of the wedge are dual-class stock and voting agreements. Additional control is frequently obtained through board representation in excess of voting control, and through the presence of a family member as CEO or Chairman of the Board. We also find that the impact of control-enhancing mechanisms on firm value depends on the specific mechanism used: the effect is negative for dual-class stock and disproportional board representation, but positive for pyramids and voting agreements.

Registration:
Admission is on first-come-first-served. Please register early for this free seminar to avoid disappointment.
To register, please click here

Enquiries :
Ms. Rozana Bte Osman
Email: rozanaosman@smu.edu.sg , Tel: 6828-0802
Ms. Priscilla Cheng
Email: priscillacheng@smu.edu.sg , Tel: 6828-0383
Ms. Sharmini Blok
Email: sharminiblok@smu.edu.sg , Tel: 6828-0976