Table 1 Variables definition Variable... | Emerald Publishing

Table 1

Variables definition

	Variable	Description
1	Number of acquisitions	It is calculated as the number of trades the business does as buyer during the year under consideration
2	Previous acquisitions	Total number of prior acquisitions in the two previous years of the respective acquisition
3	FBoD	A family having at least one family member serving on the board of directors and owning a minimum of 5% of the company’s stock. If family ownership is less than 5% and/or no family member is active in the board, the variable is set to 0; the FBoD variable is therefore truncated on the left. The percentage of family directors filling board posts is recorded as a continuous variable if ownership is higher than 5% and at least one family member is participating in board leadership
4	FBoD 1st generation	The variable is equal to FBoD if the family firm is at the first generational stage (proxied if the firm age is < 25 years old). The variable is set to 0 if the firm age is equal or higher than 25 years; thus, the variable FBoD 1st generation is truncated
5	FBoD 2nd generation	The variable is equal to FBoD if the family firm is at the second generational stage (proxied if the firm age is in the following interval: 25 years ≤ firm age <50 years). The variable is set to 0 if the firm age is out of the former interval; thus, the variable FBoD 2nd generation is truncated
6	FBoD 3rd or later generation	The variable is equal to FBoD if the family firm is at the third or later generational stage (proxied if the firm age is ≥ 50 years). The variable is set to 0 if the firm age is lower than 50 years; thus, the variable FBoD 3rd or later generation is truncated
7	Family ownership	A family with at least one member functioning as a top-level executive or member of the board of directors and owning a minimum of 5% of the company´s stock. If family ownership is less than 5% and/or no family member is participating in executive or board leadership, the variable is set to 0; as a result, the family control variable is truncated on the left. The percentage of family equity is entered a continuous variable if ownership is higher than 5% and at least one family member is participating in leadership
8	Family ownership 1st generation	The variable is equal to Family ownership if the firm is at the first generational stage (proxied if the firm age is < 25 years old). The variable is set to 0 if the firm age is equal or higher or than 25 years; thus, the variable Family ownership 1st generation is truncated
9	Family ownership 2nd generation	The variable is equal to Family ownership if the firm is at the second generational stage (proxied if the firm age is in the following interval: 25 years ≤ firm age <50 years). The variable is set to 0 if the firm age is out of the former interval; thus, the variable Family ownership 2nd generation is truncated
10	Family ownership 3rd or later generation	The variable is equal to Family ownership if the firm is at the third or later generational stage (proxied if the firm age is ≥ 50 years). The variable is set to 0 if the firm age is lower than 50 years; thus, the variable Family ownership 3rd or later generation is truncated
11	Firm size	Natural log of firm assets
12	Firm age	Natural log of firm age
13	Slack	Current assets to current liabilities
14	Tobin’s Q	Ratio of the firm’s market value to total assets. For firms with non-tradable share classes, the non-tradable shares are valued at the same price as the publicly traded shares
15	Ab gen cash	Natural log of free cash flows
16	R&D intensity	Natural log of the ratio R&D to sales
17	Capital intensity	Natural log of the ratio capital expenditures to sales
18	Leverage	Total debt to total equity

	Variable	Description
1	Number of acquisitions	It is calculated as the number of trades the business does as buyer during the year under consideration
2	Previous acquisitions	Total number of prior acquisitions in the two previous years of the respective acquisition
3	FBoD	A family having at least one family member serving on the board of directors and owning a minimum of 5% of the company’s stock. If family ownership is less than 5% and/or no family member is active in the board, the variable is set to 0; the FBoD variable is therefore truncated on the left. The percentage of family directors filling board posts is recorded as a continuous variable if ownership is higher than 5% and at least one family member is participating in board leadership
4	FBoD1st generation	The variable is equal to FBoD if the family firm is at the first generational stage (proxied if the firm age is < 25 years old). The variable is set to 0 if the firm age is equal or higher than 25 years; thus, the variable FBoD 1st generation is truncated
5	FBoD2nd generation	The variable is equal to FBoD if the family firm is at the second generational stage (proxied if the firm age is in the following interval: 25 years ≤ firm age <50 years). The variable is set to 0 if the firm age is out of the former interval; thus, the variable FBoD 2nd generation is truncated
6	FBoD3rd or later generation	The variable is equal to FBoD if the family firm is at the third or later generational stage (proxied if the firm age is ≥ 50 years). The variable is set to 0 if the firm age is lower than 50 years; thus, the variable FBoD 3rd or later generation is truncated
7	Family ownership	A family with at least one member functioning as a top-level executive or member of the board of directors and owning a minimum of 5% of the company´s stock. If family ownership is less than 5% and/or no family member is participating in executive or board leadership, the variable is set to 0; as a result, the family control variable is truncated on the left. The percentage of family equity is entered a continuous variable if ownership is higher than 5% and at least one family member is participating in leadership
8	Family ownership 1st generation	The variable is equal to Family ownership if the firm is at the first generational stage (proxied if the firm age is < 25 years old). The variable is set to 0 if the firm age is equal or higher or than 25 years; thus, the variable Family ownership 1st generation is truncated
9	Family ownership 2nd generation	The variable is equal to Family ownership if the firm is at the second generational stage (proxied if the firm age is in the following interval: 25 years ≤ firm age <50 years). The variable is set to 0 if the firm age is out of the former interval; thus, the variable Family ownership 2nd generation is truncated
10	Family ownership 3rd or later generation	The variable is equal to Family ownership if the firm is at the third or later generational stage (proxied if the firm age is ≥ 50 years). The variable is set to 0 if the firm age is lower than 50 years; thus, the variable Family ownership 3rd or later generation is truncated
11	Firm size	Natural log of firm assets
12	Firm age	Natural log of firm age
13	Slack	Current assets to current liabilities
14	Tobin’s Q	Ratio of the firm’s market value to total assets. For firms with non-tradable share classes, the non-tradable shares are valued at the same price as the publicly traded shares
15	Ab gen cash	Natural log of free cash flows
16	R&D intensity	Natural log of the ratio R&D to sales
17	Capital intensity	Natural log of the ratio capital expenditures to sales
18	Leverage	Total debt to total equity