Int. J. of Managerial and Financial Accounting   »   2016 Vol.8, No.3/4



Title: How do 'family affairs' affect firm's stock price? An application on an exploratory case study


Authors: Carmen Gallucci; Rosalia Santulli; Alessia Colombo


Department of Management and Innovation Systems, University of Salerno, Via Giovanni Paolo II 132, Fisciano 84084, SA, Italy
Department of Economics and Law, University of Cassino and Southern Lazio, Viale dell'Università - Loc. Folcara, Cassino 03043, FR, Italy
University of Salerno, Via Giovanni Paolo II 132, Fisciano 84084, SA, Italy


Abstract: Can 'Family Affairs' influence firm's stock price? Guided by this question, we traced the case of one of the most important eyewear producer: Luxottica Group S.p.A. This paper wants to provide a new and in-depth evidence to family and firm performance relation. The main focus is on family affairs, a deeply of family involvement, and firm's stock price, a specific group of financial performance. The aim of this research is to inquire into the relation between these variables using the case study methodology. The main research question is tested through the application of a regression model of the event study. Our main findings suggest that while not planned family affairs negatively affect firm's stock price, when the entrepreneurial family is planning its own future, a neutral-positive effect is produced on firm's stock price.


Keywords: event study; family affairs; family involvement; stock prices; case study; firm performance; financial performance; regression modelling; family firms; family businesses.


DOI: 10.1504/IJMFA.2016.10001635


Int. J. of Managerial and Financial Accounting, 2016 Vol.8, No.3/4, pp.319 - 333


Submission date: 21 Jun 2016
Date of acceptance: 03 Nov 2016
Available online: 25 Jan 2017



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