All in the family: The effect of family ownership on acquisition performance

Adhikari, Hari Prasad; Sutton, Ninon K.

doi:10.1016/j.jeconbus.2016.08.001

Cited by 24 publications

(32 citation statements)

References 57 publications

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“…This study also shows that family companies though have small assets are able to produce greater profits; while non-family companies with large assets produce smaller benefits. This conclusion is in agreement with research conducted by Anderson & Reeb (2003), Bouzgarrou & Navatte (2013), Adhikari & Sutton (2016), Wang & Shailer (2017) who concluded that the performance of family firms is better than the one of non-family companies. This is because the family companies can improve monitoring to managers or can align the interests of majority and minority shareholders to improve the company's performance.…”

Section: Future Performance Of Family Owned and Non-family Firmssupporting

confidence: 92%

“…It means that third hypothesis is accepted. This research supports previous study of Anderson & Reeb (2003), Bouzgarrou & Navatte (2013), Xia (2008), Adhikari & Sutton(2016), and Wang & Shailer (2017). Table 5 shows the results for testing the fourth hypothesis which states whether the type of auditor has positive effect on future performance.…”

Section: The Effect Of Earnings Management (Dac) On Future Performancesupporting

confidence: 86%

“…Anderson & Reeb (2003), Bouzgarrou & Navatte (2013) stated that family ownership positively affects the company's performance, while Xia (2008) state that investors believe that their interests are better protected by founder-controlled firms than by non-founder controlled firms. This result is supported by research conducted by Adhikari & Sutton(2016), Wang & Shailer (2017) who concluded that the performance of family enterprises is better than the one of non-family companies.…”

Section: Introductionmentioning

confidence: 52%

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Impact of family control on the relationship between earning management and future performance in Indonesia

Suprianto¹,

Setiawan²

2018

BEH

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This study attempts to examine whether the family control has an impact on the relationship between earnings management and future performance. We also assess whether the auditor has the important role in family owned firms. The total sample in this study has covered 918 firms. We suggest that the average value of the future performance of family-based firms is better than the one of non-family firms. We also show that accrual earnings management in Indonesia is more opportunistic than efficiency. Finally, bigger auditor firms which selected by family firms have the positive effect on future performance.

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Section: Future Performance Of Family Owned and Non-family Firmssupporting

confidence: 92%

Section: The Effect Of Earnings Management (Dac) On Future Performancesupporting

confidence: 86%

Section: Introductionmentioning

confidence: 52%

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Impact of family control on the relationship between earning management and future performance in Indonesia

Suprianto¹,

Setiawan²

2018

BEH

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“…The existing studies provide limited substantial evidence on the effect of family ownership for long-run performance. There are two studies for example, Adhikari and Sutton (2016) find that acquirers controlled by families earned higher returns in acquisitions. By using matching firm and market index as benchmarks, they argue that family firms engage in acquisitions by undertaking unrelated firms to reduce the risk of investment through lowering cost of capital.…”

Section: Introductionmentioning

confidence: 99%

Does investors react in long-term? The case of Malaysian acquisition

Ishak

Mohd

Shahar

2020

Cogent Business & Management

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“…suggests that instead of focusing on the development and application of generic frameworks, new research needs to consider deeper questions as to what the challenges are facing the diverse nature of family ownership and control and calls for greater empirical research on the impact familiness has on the firm's resilience capability.Finally, the work observes that family businesses can demonstrate superior performance in comparison to their non-family peers(Anderson & Reeb, 2003;Bouzgarrou & Navatte, 2013;Adhikari & Sutton, 2016;Wang & Shailer, 2017) and as such gaining great understanding into the nature of familiness could provide greater insights in towards organisational resilience as a whole. Beer, S., (1972), Brain of the firm: a development in management cybernetics.…”

mentioning

confidence: 98%

In the family way: an exploration of family business resilience

Beech

Devins

Gold

et al. 2020

IJOA

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Purpose This paper aims to explore the concept of resilience set within a family business context and considers how familiness and the nature of noneconomic factors, such as relationship dynamics influence performance. This paper provides new insights into the nature and impact of familiness as a mediating device, uncovering the potential for reframing resilience theory and practice. Design/methodology/approach The paper draws on a review of the extant literature in the areas of resilience and familiness as a means of developing a deeper understanding of the social-ecological system of the family firm. Findings The study reveals family business as a complex interrelationship between complimentary social-ecological systems. It highlights the complexity of family business and the challenges of the relational nature of familiness and how this presents additional layers of complexity in the decision making process and implementation. Research limitations/implications The paper draws on literature that is dominated by western culture and may partially or not at all reflect the issues associated with organisational resilience in family firms with such backgrounds and their culturally bound social-ecological systems. Originality/value The paper seeks to fill a knowledge gap by exploring the key elements of organisational resilience in the context of familiness. The work calls for further research into the nature of familiness connections mediating the nature of family relational dynamics. It further provides a framework indicating how these elements can shape and subvert day-to-day management events, raising implications for theory and practice and calls for deeper empirical research to be undertaken.

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All in the family: The effect of family ownership on acquisition performance

Cited by 24 publications

References 57 publications

Impact of family control on the relationship between earning management and future performance in Indonesia

Impact of family control on the relationship between earning management and future performance in Indonesia

Does investors react in long-term? The case of Malaysian acquisition

In the family way: an exploration of family business resilience

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