Purpose The purpose of this study is to investigate R&D investments in family firms. Design/methodology/approach The socio-emotional wealth (SEW) perspective, considered as a dominant paradigm in the family business field, is the theoretical framework used to report different behaviors ascertained within family firms. This paper focuses on two dimensions of the SEW, namely, family control and influence and family identity. A suspected moderating role played by the firm’s life cycle stage on the dimensions is also investigated using panel data. To analyze the results, this paper uses the Smart PLS software on secondary data collected for 76 German family firms. Findings The empirical results reveal a negative influence of SEW on R&D investments. The prominent effect of the family control and influence dimension on R&D is higher in the first part of a firm life cycle. Research limitations/implications The analysis of this study is subject to several caveats. First, to measure the R&D investment, this paper used R&D intensity computed as the total annual R&D expenses by total sales. Except for the fact that the use of proxies received several criticizes from scholars (Berrone et al., 2012) claiming how they do not directly relate to the essence of the dimensions measured. Second, this paper used two out of five FIBER dimensions only in the study. This paper took the right direction, but still, the complexity of SEW may not be fully captured following this approach (Berrone et al., 2012). Originality/value This study could be considered as an important extension of prior research investigating R&D in family firms. The authors provide a valid empirical construct, the FIBER scale, to capture non-monotonic behaviors in family firms and an enlargement of the family firms and innovation management field of research.
The purpose of this paper is to investigate stock price reaction to securities class action filings. A standard event study methodology, employing the market model, is applied to determine the abnormal returns both on and surrounding the lawsuit filing day. We utilize the Stanford Securities Class Action Clearinghouse Database (SCAC)[1] to collect the initial sample, which contains data on all securities class action. Insofar as we have eliminated any event that could contaminate the event to capture only the effects linked to the announcement, our sample is then restricted to three events corresponding to three different companies.The results show the absence of a significant reaction for the ten days preceding the lawsuit filings as well as for the ten days following the lawsuit filings. This paper uses stock market reaction to gauge the merit of Securities class action (SCAs) and the results shows that the market has a modest ability to discern meritorious filings from frivolous filings.
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