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Media reactions to family Firms’ downsizing and upsizing decisions

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  • Fourné, Sebastian P.L.
  • Kremer, Rico
  • Zschoche, Miriam

Abstract

The media is an important stakeholder when firms announce restructuring decisions. We argue that journalists’ reactions vary depending on what is associated with family firms and non-family firms in terms of employment practices and whether it is a negative or a positive restructuring (downsizing vs. upsizing). Both types of restructuring may create a cognitive dissonance with the family firm image. Empirically, we analyze the media reactions to announcements of all major restructuring decisions of family firms and non-family firms based in Germany 2006–2019. The results confirm our hypothesis that family firms are evaluated on average more favorably when announcing a downsizing decision but elicit less favorable coverage of their upsizing decisions (than non-family firms). Our study highlights that, when being evaluated by media stakeholders, there are not only benefits when a firm is associated with specific (mostly positive) characteristics but that the same characteristics can also be a burden in other situations.

Suggested Citation

  • Fourné, Sebastian P.L. & Kremer, Rico & Zschoche, Miriam, 2025. "Media reactions to family Firms’ downsizing and upsizing decisions," Journal of Business Research, Elsevier, vol. 193(C).
    • Handle: RePEc:eee:jbrese:v:193:y:2025:i:c:s0148296325001717
    DOI: 10.1016/j.jbusres.2025.115348
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