Trust, family firms, and M&A quality

Gianfranco Siciliano, Annalisa Prencipe, Suresh Radhakrishnan

Research output: Contribution to journalJournal


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.
Original languageEnglish
JournalAsia-Pacific Journal of Accounting and Economics
Early online date22 Apr 2022
Publication statusPublished - 2022


  • Cross-country trust
  • family firms
  • announcement returns
  • cross-border M&A
  • agency conflicts


Dive into the research topics of 'Trust, family firms, and M&A quality'. Together they form a unique fingerprint.

Cite this