Influence of family ownership on the industry-diversifying nature of a firm's M&A strategy: Empirical evidence from Continental Europe
dc.contributor.author | Defrancq, Corneel | |
dc.contributor.author | Huyghebaert, Nancy | |
dc.contributor.author | Luypaert, Mathieu | |
dc.date.accessioned | 2017-12-02T15:00:18Z | |
dc.date.available | 2017-12-02T15:00:18Z | |
dc.date.issued | 2016 | |
dc.identifier.doi | 10.1016/j.jfbs.2016.11.002 | |
dc.identifier.uri | http://hdl.handle.net/20.500.12127/5667 | |
dc.description.abstract | We investigate how family ownership influences the industry-diversifying nature of M&As by listed companies in Continental Europe and the corresponding shareholder value effects at deal announcement. For a large sample of 3485 M&As during 2005-2013, we observe that acquirers having a family as the largest shareholder are less inclined to take over an unrelated target firm than lone-founder and other types of non-family firms. However, as the size of the family ownership stake increases, family firms become more eager to follow an industry-diversifying M&A strategy. While industry-diversifying M&As are associated with lower abnormal returns for acquirer shareholders on average, we also observe that family ownership fully reverses this negative effect. We therefore conclude that those unrelated M&As, although still representing a conflict of interest with the family firm's minority investors, do not destroy shareholder value on average. | |
dc.language.iso | en | |
dc.publisher | Elsevier | |
dc.subject | Accounting & Finance | |
dc.subject | Diversification | |
dc.subject | Mergers & Acquisitions | |
dc.subject | Ownership | |
dc.subject | Family Firms | |
dc.subject | Lone-founder Firms | |
dc.subject | Corporate Governance | |
dc.subject | Europe | |
dc.title | Influence of family ownership on the industry-diversifying nature of a firm's M&A strategy: Empirical evidence from Continental Europe | |
dc.identifier.journal | Journal of Family Business Strategy | |
dc.source.volume | 7 | |
dc.source.issue | 4 | |
dc.source.beginpage | 210 | |
dc.source.endpage | 226 | |
vlerick.knowledgedomain | Accounting & Finance | |
vlerick.knowledgedomain | Entrepreneurship | |
vlerick.typearticle | Journal article with impact factor | |
vlerick.vlerickdepartment | A&F | |
vlerick.vlerickdepartment | CMAB | |
dc.identifier.vperid | 134252 | |
dc.identifier.vperid | 115460 | |
dc.identifier.vperid | 132517 | |
dc.identifier.vpubid | 6968 |