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

Authors: Carmen Gallucci; Rosalia Santulli; Alessia Colombo

Addresses: 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.2016.081860

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

Available online: 25 Jan 2017 *

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