Family firms and high technology Mergers & Acquisitions

Paul Andre, Walid Ben-Amar () and Samir Saadi

Journal of Management & Governance, 2014, vol. 18, issue 1, 129-158

Abstract: We examine whether family firms undertake value creating high technology M&A. We also examine whether level of ownership, diversification, agency issues and CEO type matter. Our sample consists of high-technology M&A undertaken by Canadian firms over the period 1997–2006. Canada offers a setting with many family firms and the use of control enhancing mechanisms such as dual class shares and pyramid structures. We find a positive relationship between family ownership and announcement period abnormal returns. This relationship, however, starts to decrease at higher levels of ownership but remains overall positive. We also show that the agency conflict between shareholders and professional managers has a detrimental impact on announcement period abnormal returns whereas the conflict between controlling and minority shareholders via control enhancing mechanisms does not. Finally, we document that founder CEO undertake better high tech M&A than descendant or hired CEO. Copyright Springer Science+Business Media, LLC. 2014

Keywords: Family firms; Family ownership; Mergers & Acquisitions; Corporate governance; Control enhancing mechanisms; High-technology firms; Event studies; G14; G34 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (15)

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DOI: 10.1007/s10997-012-9221-x

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