Faculty of Business Seminar Series: Do family firms have higher or lower deal valuations? A contextual analysis / Zulfiquer Haider

Date: Nov 15, 2019 / Friday

Time: 13:30-15:00

Place: AB2, Meeting Room 345

Title: Do family firms have higher or lower deal valuations? A contextual analysis 

Abstract: How does the socioemotional wealth (SEW) of a family firm affect its deal valuation in acquisition? Using a sample of 515 completed transactions of S&P 500 firms over the period 2003-2016, we examine a number of contexts - payment mode, public governance and domestic vs. cross-border acquisitions - and find that SEW creates differential valuations of targets by family firms vis-à-vis non-family firms. Particularly from an internationalization perspective, we find that acquisitions may be an ideal option for family firms because foreign acquisitions may be loosely coupled from