Family firms' cross-border mergers and acquisitions

Matteo P. Arena, Michaël Dewally, Bharat A. Jain and Yingying Shao

International Review of Financial Analysis, 2022, vol. 82, issue C

Abstract: We evaluate the link between family ownership and cross-border investment behavior. By analyzing a sample of 2000 large U.S. acquirers between 2001 and 2016, we empirically show that family firms are less active in the international market for corporate control. Unlike non-family firms, family firms generate positive cross-border acquisition returns. Our results also suggest that target country conditions and acquirer financing constraints influence the link between family ownership and cross-border acquisitiveness as well as its valuation consequences. Overall, we find evidence to indicate that reduced shareholder-manager agency conflicts in family firms result in value enhancing cross-border investment behavior.

Keywords: Mergers & acquisitions; Family firm; International; Cross-border (search for similar items in EconPapers)
JEL-codes: F23 G24 G34 Z1 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:82:y:2022:i:c:s1057521922001521

DOI: 10.1016/j.irfa.2022.102191

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