Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Are Family Firms More Risk Averse Regarding M&A Transactions?

Are Family Firms More Risk Averse Regarding M&A Transactions?

Wenig, Thilo

Paperback

Management

ISBN10: 3668961735
ISBN13: 9783668961739
Publisher: Grin Verlag
Published: Oct 8 2019
Pages: 52
Weight: 0.18
Height: 0.12 Width: 5.83 Depth: 8.27
Language: English
Bachelor Thesis from the year 2018 in the subject Business economics - General, grade: 1,0, Otto Beisheim School of Management Vallendar (Institut für Familienunternehmen), language: English, abstract: In line with the prevalent notion that family businesses are more risk averse than non-family firms when facing strategic decisions that impact the long-term survival of the business, I hypothesize that the risk behavior resulting from the ownership structure of a firm affects its M&A activity. However, in order to gain a deeper understanding of the underlying risk mechanisms and theories, I differentiate between true family firms and lone founder firms throughout the course of this thesis. In a study of 177 firms listed in the German Prime Standard, I found that that true family firms show a lower propensity towards large target firm sizes when engaging in M&As as they want to avoid large, potentially destabilizing transactions. Furthermore, the presence of a family CEO in the firm reinforces this general tendency towards risk aversion. Although I did not find a significant relation between lone founder firms and target firm sizes, I empirically show that the presence of a founder CEO in these firms is associated with larger target firm sizes. Therefore, firms that are run by the founders themselves show a comparatively risk seeking behavior.

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