Please use this identifier to cite or link to this item:
Appears in Collections:Accounting and Finance Journal Articles
Title: Contested Takeovers of Family Firms and Socioemotional Wealth: a Case Study (Forthcoming)
Authors: Campbell, Kevin
Jerzemowska, Magdalena
Contact Email:
Keywords: Takeovers
Family business
Socioemotional wealth
Corporate governance
Agency theory
Pac-Man defence
Citation: Campbell K & Jerzemowska M (2017) Contested Takeovers of Family Firms and Socioemotional Wealth: a Case Study (Forthcoming), Baltic Journal of Management.
Abstract: Purpose – This paper provides an understanding of the importance of socioemotional wealth to family firms in Poland viewed through the lens of the events surrounding the first hostile takeover bid of the post-communist era on the Warsaw Stock Exchange when the clothing company Vistula & Wólczanka (V&W) made an unsolicited, leveraged bid for the family-controlled jewellery company W. Kruk.  Design/methodology/approach – The 2008 takeover and its aftermath are described in the context of the corporate governance and legal environment in Poland. The case study events demonstrate the connection between firm behavior and socioemotional wealth theory.  Findings –After the acquisition of W. Kruk by V&W, the Kruk family purchased stock in the newly named Vistula Group and gained influence over the supervisory board in concert with a business ally, eventually wresting back control of the company in the style of a Pac-Man ‘defence’. The case study illustrates the importance of socioemotional wealth in family firm takeovers.  Research limitations/implications – The case-study design has limitations for generalizability. Nevertheless the research highlights the relevance of socioemotional wealth preservation in understanding the market for control of listed family firms in Poland.  Practical implications – Understanding the reaction by family firms to takeover bids requires recognition that there is a tradeoff between financial and socioemotional wealth considerations, not just financial gains and losses.  Originality/value – The case study demonstrates the importance of socioemotional wealth to family firms and suggests that the balance of power in takeovers on the Polish stock market rests with incumbent management.
Rights: This item has been embargoed for a period. During the embargo please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study.

Files in This Item:
File Description SizeFormat 
Contested Takeovers of Family Firms and Socioemotional Wealth a Case Study.pdf312.31 kBAdobe PDFUnder Embargo until 12/7/2020     Request a copy

Note: If any of the files in this item are currently embargoed, you can request a copy directly from the author by clicking the padlock icon above. However, this facility is dependent on the depositor still being contactable at their original email address.

This item is protected by original copyright

Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.

If you believe that any material held in STORRE infringes copyright, please contact providing details and we will remove the Work from public display in STORRE and investigate your claim.