A Real Options View on Minority Acquisitions by Family Firms

Issah, Wunnam Basit ORCID: https://orcid.org/0000-0002-0942-8228 and Clauss, Thomas (2020) A Real Options View on Minority Acquisitions by Family Firms. In: Academy of Management Proceedings. UNSPECIFIED.

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Abstract

Acquisitions involve high levels of uncertainty because resources are committed to risky acquisition activities even before the actual performance outcomes of these investments are known. In this study we examine the likelihood of using minority acquisitions as a risk reducing mechanism by family firms. Based on an analysis of a panel dataset of S&P 500 firms, we find that the acquisition decisions of family firms are consistent with the real options theory. We observe that family firms engage in related minority acquisitions because of their limited downside risk on socioemotional wealth.

Item Type:	Book Section
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:	13 Mar 2024 14:30
Last Modified:	25 Sep 2024 10:45
URI:	https://ueaeprints.uea.ac.uk/id/eprint/94670
DOI:	10.5465/AMBPP.2021.15908abstract

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