Cómo las empresas familiares gestionan las adquisiciones a través de los políticos en sus consejos

What is it about?

This study examines how family control influences firms' acquisition decisions using a socioemotional wealth (SEW) approach. It explores the potential emotional benefits and losses family firms anticipate when considering acquisitions. Based on data from Spanish public companies between 2010 and 2015, the study found that family firms are less likely to pursue acquisitions compared to non-family firms. This tendency is even stronger when there are no former politicians on their boards, as their presence can help mitigate emotional losses. Additionally, the positive influence of former politicians on acquisition activity is only observed in low-velocity industries.

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Why is it important?

This study is important because it sheds light on how family control affects strategic decisions, particularly acquisitions, using a socioemotional wealth (SEW) framework. It highlights the unique dynamics of family firms, showing they are generally cautious with acquisitions due to emotional considerations. The study also reveals the nuanced role of former politicians on boards in mitigating risks and driving acquisitions, especially in stable industries. By exploring the intersection of emotional priorities, governance, and strategy, it offers valuable insights for researchers, policymakers, and business leaders.