The corporate governance-diversification link: exploring the heterogeneity of family firms

Purpose Building on behavioral agency theory, the authors explore role played by corporate governance characteristics as drivers of diversification strategies family firms. Specifically, this study aims to investigate effects board size and gender diversity likelihood that firms will execute a diversifying acquisition vis-à-vis related acquisition. Furthermore, contingency foreign directorship firm’s listing status. Design/methodology/approach The hypotheses are tested an original sample 213 cross-border acquisitions executed Italian between 2008 2021. Findings findings suggest both large sizes greater positively affect While presence directors magnifies positive effect size, discourages in case listed Originality/value originality is twofold. First, while prior literature has mostly focused vs nonfamily dichotomy, paper contributes emergent line research investigating heterogeneity among firms’ strategy decisions. Second, exploring governance-diversification link context business, answer recent calls deserves further investigation light its highly controversial nature terms socioemotional wealth implications potential mismatch multiple objectives.