SHIMIZU Kazuyuki    Department   Undergraduate School  , School of Business Administration    Position   Professor
Language	English
Publication Date	2022/02
Type	Academic Journal
Peer Review	Peer reviewed
Title	Heterogeneity of Institutional Investors, Longevity and Corporate Governance: The Case of Merck KGaA and Merck & Co.
Contribution Type	Sole-authored
Journal	日本情報経営学会誌
Journal Type	Japan
Publisher	日本情報経営学会
Volume, Issue, Page	41(4),pp.80-88
Total page number	9
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. These two companies were once the same, with each originating from the Merck family drug store in Darmstadt, Germany, 350 years ago in 1668. Merck established its American branch in 1885. However, the two companies were separated during the First World War in 1917 because MSD was expropriated at this time. Our hypothesis is that Merck achieved a more stable longevity than MSD on the basis of share price. However, 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; this contradicts our expectations for the longevity also stability of the long-established corporation.