TY - JOUR
T1 - Trust, family firms, and M&A quality
AU - Siciliano, Gianfranco
AU - Prencipe, Annalisa
AU - Radhakrishnan, Suresh
PY - 2022
Y1 - 2022
N2 - This paper examines the effect of trust on the quality of M&A across family and non-family firms. We find that family firms are associated with better M&A quality than non-family firms and that M&A deals involving high trust are of better quality. When we consider the association of trust, family firms and their interaction, we find that trust is the channel/mechanism through which family firms are associated with better M&A quality. Collectively, these results suggest that trust enables family firms to build long-term relationships with employees, suppliers and customers, and potentially mitigate the Type I agency problems.
AB - This paper examines the effect of trust on the quality of M&A across family and non-family firms. We find that family firms are associated with better M&A quality than non-family firms and that M&A deals involving high trust are of better quality. When we consider the association of trust, family firms and their interaction, we find that trust is the channel/mechanism through which family firms are associated with better M&A quality. Collectively, these results suggest that trust enables family firms to build long-term relationships with employees, suppliers and customers, and potentially mitigate the Type I agency problems.
KW - Cross-country trust
KW - family firms
KW - announcement returns
KW - cross-border M&A
KW - agency conflicts
UR - https://www.webofscience.com/api/gateway?GWVersion=2&SrcApp=ceibs_wosapi&SrcAuth=WosAPI&KeyUT=WOS:000784473200001&DestLinkType=FullRecord&DestApp=WOS
U2 - 10.1080/16081625.2022.2067884
DO - 10.1080/16081625.2022.2067884
M3 - Journal
SN - 1608-1625
JO - Asia-Pacific Journal of Accounting and Economics
JF - Asia-Pacific Journal of Accounting and Economics
ER -