How do Family Affairs Affect Firms Stock Price? An Application on an Exploratory Case Study

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.