IDEAS home Printed from https://ideas.repec.org/a/eee/fambus/v16y2025i1s1877858524000433.html
   My bibliography  Save this article

Family ownership and M&A propensity in emerging market firms: Playing along the “rules of the game”

Author

Listed:
  • Panicker, Vidya Sukumara
  • Georgiadou, Elena

Abstract

The literature is ambivalent about the impact of family ownership on Mergers and Acquisitions (M&A) undertaken by family firms with prior studies arguing that family Socioemotional Wealth (SEW) may either promote or dissuade M&A. To investigate this ambivalence, we combine SEW and institutional perspectives to examine the influence of family ownership, institutional shareholding, and board composition, on M&A propensity of family firms, in the emerging market of India. On a sample of 3209 Indian firms (of which 1824 are family firms) in the 2006–2017 time-period, we find that family ownership positively impacts M&A propensity of family firms. However, ownership by domestic financial institutions negatively moderates the relationship between family ownership and M&A propensity in these firms. We also find that the presence of family directors and independent directors on the board is instrumental in promoting family firm M&A. Our findings enhance the understanding of M&A propensity in family firms within a specific emerging market and illustrate how this propensity is influenced by the corporate governance characteristics in these firms.

Suggested Citation

  • Panicker, Vidya Sukumara & Georgiadou, Elena, 2025. "Family ownership and M&A propensity in emerging market firms: Playing along the “rules of the game”," Journal of Family Business Strategy, Elsevier, vol. 16(1).
    • Handle: RePEc:eee:fambus:v:16:y:2025:i:1:s1877858524000433
    DOI: 10.1016/j.jfbs.2024.100648
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1877858524000433
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jfbs.2024.100648?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:fambus:v:16:y:2025:i:1:s1877858524000433. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/719791/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.