Firm Acquisitions by Family Firms: A Mixed Gamble Approach

Katrin Hussinger, Abdul-Basit Issah

Research output: Working paperResearch


This study elucidates the mixed gamble confronting family firms when considering a related firm acquisition. The socioemotional and financial wealth trade-off associated with related firm acquisitions as well as their long-term horizon turns family firms more likely to undertake a related acquisition than non-family firms, especially when they are performing above their aspiration level. Post-merger performance pattern confirm that family firms are able to create long-term value through these acquisitions and by doing so they surpass non-family firms. These findings stand in contrast to commonly used behavioural agency predictions, but can be reconciled with theory through a mixed gambles’ lens.
Original languageEnglish
Place of PublicationMannheim
PublisherLeibnitz Centre for European Economic Research (ZEW)
Number of pages58
Publication statusPublished - Oct 2019
SeriesZEW Discussion Papers


  • Firm acquisitions
  • Related firm acquisitions
  • Mixed gamble
  • Aspiration level
  • Socioemotional wealth
  • Value creation

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