Sometimes less is more: A real options view on minority acquisitions by family firms

Issah, Wunnam Basit ORCID: https://orcid.org/0000-0002-0942-8228 and Clauss, Thomas (2026) Sometimes less is more: A real options view on minority acquisitions by family firms. Journal of Business Research. ISSN 0148-2963 (In Press)

PDF (Manuscript_Accepted Version) - Accepted Version Restricted to Repository staff only until 31 December 2099. Available under License Creative Commons Attribution. Request a copy

Abstract

Acquisitions involve high levels of uncertainty, as firms commit substantial resources to risky activities long before the performance outcomes of these investments become known. Drawing on real options logic, firms may prefer minority acquisitions over majority acquisitions because minority stakes secure strategic options while simultaneously reducing exposure to risk. We examine this assumption in the context of family firms, whose desire to preserve socio-emotional wealth (SEW), alongside financial returns, leads them to make strategic choices that differ from those of non-family firms. Therefore, this study investigates the likelihood that family firms engage in minority acquisitions. Consistent with theoretical expectations derived from real options logic and SEW and based on an analysis of a panel dataset of U.S. S&P 500 firms, we find that, through their prioritisation of SEW (e.g., independence, binding social ties, and family identity and reputation), family firms are more likely than non-family firms to undertake minority acquisitions. Family firms are also more likely to make a follow-up acquisition after an initial minority acquisition. Finally, we find that, through their prioritisation of SEW (e.g., emotional attachment and binding social ties), family firms show a higher inclination toward industry-related minority acquisitions. Overall, our study contributes to a more nuanced understanding of acquisition behaviour in family businesses.

Item Type:	Article
Uncontrolled Keywords:	real options,minority acquisitions,related minority acquisitions,family firms,socioemotional wealth,3*,das to be completed,2026 ,/dk/atira/pure/researchoutput/REFrank/3_
Faculty \ School:	Faculty of Social Sciences > Norwich Business School
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Strategy and Entrepreneurship
Depositing User:	LivePure Connector
Date Deposited:	15 Oct 2026 14:55
Last Modified:	15 Oct 2026 14:55
URI:	https://ueaeprints.uea.ac.uk/id/eprint/104805
DOI:	issn:0148-2963

Actions (login required)

View Item