In the paper “Controlling Shareholders’ Value, Long-Run Firm Value and Short-Term Performance”, Hyung Cheol Kang, CDAR Co-director Robert M. Anderson, CRMR Affiliated Researcher Kyong Shik Eom, and Sang Koo Kang propose a new determinant of firm value within a business group. From the abstract: “We propose a new determinant of firm value within a business group: controlling shareholders’ value (CSV), the value of controlling shareholders’ stake in an affiliate divided by their stake in all affiliates. We posit that controlling shareholders focus attention on the high-CSV affiliates. Using data on Korean family-controlled business groups, we find that CSV has greater explanatory power for firm performance than traditional cash flow rights (CFR). We also find that, among affiliates with non-family CEOs, higher CSV is associated with higher Tobin’s Q and lower EBITDA, indicating that controlling shareholders and non-family CEO have successfully addressed their principal-agent problem.”
Related eventsTuesday, February 14, 201711:00 AM to 12:30 PM Adair Morse, Haas School of Business: A Popularity Asset Pricing Model
We study investments in impact funds, defined as venture capital or growth equity funds with dual objectives of generating financial returns and positive externalities. Being an impact fund elevates a fund’s marginal investment rate by 14.1% relative to a traditional VC fund, even more for funds focused on environmental, poverty, and minority/women issues. Europeans and UNPRI signatories have sharply higher demand for impact. Three investor attributes – household-backed capital, mission-oriented investors, and investors facing political/regulatory pressure to invest in impact – account for the higher impact demand. In contrast, legal restrictions against impact (e.g., ERISA) hinder 25% of total demand.
Friday, November 11, 20168:00 AM to 5:00 PM Conference on Sustainable, Responsible, Impact Investing (SRI)
CDAR Co-Director Lisa Goldberg Presented the Moskowitz Prize at 2016 SRI Conference
(link to full press release)
The Moskowitz Prize is a global award recognizing outstanding academic research on a topic germane to the sustainable, responsible, impact (SRI) investment industry. The Annual SRI Conference serves thought leaders, investors, and investment professionals in the ESG, Shareowner Advocacy, and Impact Investing space, catalyzing the shift to a more socially equitable and environmentally sustainable economy.
Thursday, October 27, 201612:30 PM to 2:00 PM The Center for Responsible Business @ Haas School of Business: Corporate Sustainability and Materiality: Strategy, Practice, and Implementation
How do companies and investment funds implement corporate sustainability in a strategic and material way? This Center for Responsible Business Peterson Speaker Series will dive into case studies and learnings from academia, a company, and an investment fund. Register here.
Divya Mankikar, Head of ESG Integration, Investment Officer III, CalPERS
George Serafeim, Jakurski Family Associate Professor, Harvard Business School; Senior Partner, KKS Advisors; Senior Advisor, Calvert Investments
Susanne Stormer, Vice President, Corporate Sustainability, Novo Nordisk
Dan Hanson , Lecturer, Berkeley-Haas Center for Responsible Business; Partner, Head of US Equities, Jarislowsky Fraser Global Investment Management