SHIMIZU Kazuyuki    Department   Undergraduate School  , School of Business Administration    Position   Professor
Date	2019/09/03
Presentation Theme	HETEROGENEITY OF INSTITUTIONAL INVESTORS, LONGEVITY AND CORPORATE GOVERNANCE: THE CASE OF MERCK KGAA AND MERCK & CO
Conference	AEDEM International Conference
Promoters	The European Academy of Management and Business Economics (AEDEM)
Conference Type	International
Presentation Type	Speech (General)
Contribution Type	Individual
Venue	Meiji University
Details	Long-established corporations are generally considered stable. By examining the cases of the German pharmaceutical company Merck KGaA and US subsidiary Merck & Co., Inc. (MSD), this study examines the factors that influence corporate longevity.　The standard deviation of the share price of Merck ($28.27) is higher than that of MSD ($15.10) over a 20-year period, thus indicating that the share price of Merck significantly fluctuated. The main cause of this difference might be the capitalisation of Merck of 30% of their capital as a limited partnership with shares in 1995. We hypothesise that a structural governance change occurred in both corporations owing to two aspects, on the one hands, emphasising the legal status for the general partner of family ownership for Merck and the other, this change shows the heterogeneity of institutional investors for their ownership for MSD.