Family business: the role of target non-financial characteristics in M%A activities: an explanatory analysis of the Italian context

Anastasia Giakoumelou, Beatrice Sciarra and Felice Petruzzella

International Journal of Behavioural Accounting and Finance, 2023, vol. 7, issue 1, 86-111

Abstract: Family businesses are major contributors to the world's economy, but their actual contribution is difficult to evaluate due to a lack of consensus around the very definition of a family business. This study investigates whether non-financial family-related factors determine deal value in extraordinary financial operations that involve controlling stakes. The aim of this study is to bridge a gap in literature on the role of family-related non-financial factors in the M%A context when family firms are involved as target. Our findings highlight that the presence of the firm's founder among the selling shareholders and a higher stake of family shareholders retaining governance or management roles in the firm post-operation negatively affect the acquisition price. This study has important theoretical and managerial implications that can help academics and practitioners understand the deal value determinants in the M%A context.

Keywords: family business; target; non-financial characteristics; M%A; control. (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbeaf:v:7:y:2023:i:1:p:86-111

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