M&A value creation in family businesses: evaluating the impact of macroeconomic events and quality of institutions over time

Abstract

This paper investigates how family ownership, control and management influence market reaction to M&A, both under different economic conditions and under distinct institutional backgrounds. Using a database of 381 acquisitions, performed by firms from 11 European and North American countries between 2005-2015, I conclude, through univariate and multivariate analyses, that family firm resilience is not observed in M&A, with acquisitions being perceived as opportunistic in bad times. On the contrary, I observe that family firms significantly outperform their non-family peers in good times and that shareholder protection is a key determinant of M&A value when acquirors have distinct ownership structures.