Title

Family Firms' Cross-Border Mergers and Acquisitions

Document Type

Article

Publication Date

7-2022

Publisher

Elsevier

Source Publication

International Review of Financial Analysis

Source ISSN

1057-5219

Original Item ID

DOI: 10.1016/j.irfa.2022.102191

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.

Comments

International Review of Financial Analysis, Vol. 82 (July 2022): 102191. DOI.

Share

COinS