Content from the Brookings Institution India Center is now archived. After seven years of an impactful partnership, as of September 11, 2020, Brookings India is now the Centre for Social and Economic Progress, an independent public policy institution based in India.
Brookings India hosted a Development Seminar on “Succession and Exit in Family Firms” with Prof. Vikas Mehrotra, A.F. (Chip) Collins Professor of Finance at the University of Alberta School of Business.
Abstract: Family control of corporations in advanced economies is thought to weaken as firms grow and age over time. However, evidence from Japan challenges this view – 50 years after their IPO, almost half of all family firms remain under the control of the founder’s descendants, even when their ownership stake becomes insignificant. In this seminar, Mehrotra will present evidence and analysis on succession and exit in Japanese Family Firms. The first part of the talk will be focused on “Adoptive Expectations: Rising Sons in Japanese Family Firms” where he analyses the performance and motivations of blood heirs, adopted heirs and professional managers in family-run businesses. The second part of his talk aptly titled “Who is the Boss? Family Control without Ownership in Publicly-traded Japanese Corporations,” will look at the role finance and a family’s intangible assets such as reputation and networks play in ensuring family firms remain under the control of founder’s descendants.
Bio: Vikas Mehrotra is the A.F. (Chip) Collins Professor of Finance at the University Of Alberta School Of Business. Previously, he served as the department chair of Finance and Statistical Analysis within the School of Business. And prior to that he was the Associate Dean, MBA Programs at the Alberta School of Business. Mehrotra’s work deals with corporate restructuring, mergers and acquisitions, capital structure, and international financial markets. He has been published in leading finance journals such as The Journal of Finance, The Journal of Financial Economics and his work has been cited in the Financial Times, The Wall Street Journal and The Economist amongst others. Mehrotra has a PhD (Finance) from the University of Oregon, USA, and a BTe.ch (Chemical Engineering) from the Indian Institute of Technology, Kharagpur, India.
Discussant: Gaurav Dalmia, Chairman of Dalmia Group Holdings, who will be bringing an Indian perspective on family businesses.