Nearby or faraway? Determinants of target selection in family firm acquisitions

[EN] We posit that, beyond the distinction between domestic and cross-border deals, family ownership configurations and board ownership determine whether family firms (FFs) prefer targets from closer or more distant markets, thus highlighting the crucial role of geographical distance when conducting...

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Autores: Calabrò, Andrea, Requejo Puerto, Ignacio, Reyes Reina, Fernando Enrique, Sánchez Bueno, María José, Suárez González, Isabel
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2024
País:España
Institución:Universidad de Salamanca (USAL)
Repositorio:GREDOS. Repositorio Institucional de la Universidad de Salamanca
OAI Identifier:oai:gredos.usal.es:10366/167591
Acceso en línea:http://hdl.handle.net/10366/167591
Access Level:acceso embargado
Palabra clave:Family firms
Acquisitions
Target selection
Distance
Performance aspirations
5311 Organización y Dirección de Empresas
5311.03 Estudios Industriales
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repository_id_str
spelling Nearby or faraway? Determinants of target selection in family firm acquisitionsCalabrò, AndreaRequejo Puerto, IgnacioReyes Reina, Fernando EnriqueSánchez Bueno, María JoséSuárez González, IsabelFamily firmsAcquisitionsTarget selectionDistancePerformance aspirations5311 Organización y Dirección de Empresas5311.03 Estudios Industriales[EN] We posit that, beyond the distinction between domestic and cross-border deals, family ownership configurations and board ownership determine whether family firms (FFs) prefer targets from closer or more distant markets, thus highlighting the crucial role of geographical distance when conducting acquisitions abroad. We further investigate whether target selection depends on firm performance relative to its aspirations. To test our hypotheses, we gather a comprehensive sample of 7,297 acquisition deals, of which 3,180 are cross-border transactions, undertaken by family and non-FFs from 30 European countries during the 2007–2015 period, with target firms located in 65 different countries. Our empirical strategy allows us to analyze FFs’ preference in terms of geographical distance when they decide to acquire a foreign company. The main findings suggest that FFs acquire targets from closer locations when there is a group of minority family shareholders or a higher level of board ownership. Meanwhile, FFs performing below their aspirations acquire more distant targets compared to other FFs. Our findings contribute to international business (IB) research by demonstrating that the distinction between domestic and foreign targets is not enough when investigating acquisitions, but the distance to the target firm is vital for a better understanding of cross-border deals.Elsevierinfo202520252024info:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersionhttp://hdl.handle.net/10366/167591reponame:GREDOS. Repositorio Institucional de la Universidad de Salamancainstname:Universidad de Salamanca (USAL)InglésPID2019-107546GA-I00PID2019-106185GB-I00PID2022-136496NB-I00SA069G18SA106P20CLU-2019-03Attribution-NonCommercial-NoDerivatives 4.0 Internacionalhttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/embargoedAccessoai:gredos.usal.es:10366/1675912026-06-07T06:28:51Z
dc.title.none.fl_str_mv Nearby or faraway? Determinants of target selection in family firm acquisitions
title Nearby or faraway? Determinants of target selection in family firm acquisitions
spellingShingle Nearby or faraway? Determinants of target selection in family firm acquisitions
Calabrò, Andrea
Family firms
Acquisitions
Target selection
Distance
Performance aspirations
5311 Organización y Dirección de Empresas
5311.03 Estudios Industriales
title_short Nearby or faraway? Determinants of target selection in family firm acquisitions
title_full Nearby or faraway? Determinants of target selection in family firm acquisitions
title_fullStr Nearby or faraway? Determinants of target selection in family firm acquisitions
title_full_unstemmed Nearby or faraway? Determinants of target selection in family firm acquisitions
title_sort Nearby or faraway? Determinants of target selection in family firm acquisitions
dc.creator.none.fl_str_mv Calabrò, Andrea
Requejo Puerto, Ignacio
Reyes Reina, Fernando Enrique
Sánchez Bueno, María José
Suárez González, Isabel
author Calabrò, Andrea
author_facet Calabrò, Andrea
Requejo Puerto, Ignacio
Reyes Reina, Fernando Enrique
Sánchez Bueno, María José
Suárez González, Isabel
author_role author
author2 Requejo Puerto, Ignacio
Reyes Reina, Fernando Enrique
Sánchez Bueno, María José
Suárez González, Isabel
author2_role author
author
author
author
dc.subject.none.fl_str_mv Family firms
Acquisitions
Target selection
Distance
Performance aspirations
5311 Organización y Dirección de Empresas
5311.03 Estudios Industriales
topic Family firms
Acquisitions
Target selection
Distance
Performance aspirations
5311 Organización y Dirección de Empresas
5311.03 Estudios Industriales
description [EN] We posit that, beyond the distinction between domestic and cross-border deals, family ownership configurations and board ownership determine whether family firms (FFs) prefer targets from closer or more distant markets, thus highlighting the crucial role of geographical distance when conducting acquisitions abroad. We further investigate whether target selection depends on firm performance relative to its aspirations. To test our hypotheses, we gather a comprehensive sample of 7,297 acquisition deals, of which 3,180 are cross-border transactions, undertaken by family and non-FFs from 30 European countries during the 2007–2015 period, with target firms located in 65 different countries. Our empirical strategy allows us to analyze FFs’ preference in terms of geographical distance when they decide to acquire a foreign company. The main findings suggest that FFs acquire targets from closer locations when there is a group of minority family shareholders or a higher level of board ownership. Meanwhile, FFs performing below their aspirations acquire more distant targets compared to other FFs. Our findings contribute to international business (IB) research by demonstrating that the distinction between domestic and foreign targets is not enough when investigating acquisitions, but the distance to the target firm is vital for a better understanding of cross-border deals.
publishDate 2024
dc.date.none.fl_str_mv 2024
2025
2025
info
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
format article
status_str acceptedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/10366/167591
url http://hdl.handle.net/10366/167591
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv PID2019-107546GA-I00
PID2019-106185GB-I00
PID2022-136496NB-I00
SA069G18
SA106P20
CLU-2019-03
dc.rights.none.fl_str_mv Attribution-NonCommercial-NoDerivatives 4.0 Internacional
http://creativecommons.org/licenses/by-nc-nd/4.0/
info:eu-repo/semantics/embargoedAccess
rights_invalid_str_mv Attribution-NonCommercial-NoDerivatives 4.0 Internacional
http://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv embargoedAccess
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:GREDOS. Repositorio Institucional de la Universidad de Salamanca
instname:Universidad de Salamanca (USAL)
instname_str Universidad de Salamanca (USAL)
reponame_str GREDOS. Repositorio Institucional de la Universidad de Salamanca
collection GREDOS. Repositorio Institucional de la Universidad de Salamanca
repository.name.fl_str_mv
repository.mail.fl_str_mv
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