Building on behavioral agency theory and the resource-based view, we explore the role played by corporate governance characteristics of family firms in affecting their diversification strategies. Specifically, we investigate the role played by two sources of board heterogeneity, namely board size and board gender diversity, on the likelihood that family firms will execute a diversifying acquisition vis-à-vis a related acquisition. Furthermore, we explore the contingency effect played by foreign directorship and the firm’s listing status. Using a sample of 213 cross-border acquisitions executed between 2008 and 2021 by Italian family firms, we find evidence that large board size and greater gender diversity positively affect diversification of family firms. While the presence of international directors magnifies the positive effect of board size, gender diversity discourages diversification in case of listed firms.

Galavotti, I., D'Este, C., Corporate diversification in family firms: Does board composition matter?, Contributed paper, in Leading digital transformation, (Winterthur, 15-17 June 2022), European Academy of Management, Bruxelles, Belgium 2022:2022 1-32 [http://hdl.handle.net/10807/202292]

Corporate diversification in family firms: Does board composition matter?

Galavotti, Ilaria
Primo
;
D'Este, Carlotta
Secondo
2022

Abstract

Building on behavioral agency theory and the resource-based view, we explore the role played by corporate governance characteristics of family firms in affecting their diversification strategies. Specifically, we investigate the role played by two sources of board heterogeneity, namely board size and board gender diversity, on the likelihood that family firms will execute a diversifying acquisition vis-à-vis a related acquisition. Furthermore, we explore the contingency effect played by foreign directorship and the firm’s listing status. Using a sample of 213 cross-border acquisitions executed between 2008 and 2021 by Italian family firms, we find evidence that large board size and greater gender diversity positively affect diversification of family firms. While the presence of international directors magnifies the positive effect of board size, gender diversity discourages diversification in case of listed firms.
Inglese
Leading digital transformation
European Academy of Management (EURAM) annual conference
Winterthur
Contributed paper
15-giu-2022
17-giu-2022
978-2-9602195-4-8
European Academy of Management
Galavotti, I., D'Este, C., Corporate diversification in family firms: Does board composition matter?, Contributed paper, in Leading digital transformation, (Winterthur, 15-17 June 2022), European Academy of Management, Bruxelles, Belgium 2022:2022 1-32 [http://hdl.handle.net/10807/202292]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/202292
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