How Do German Family Businesses Change on the Stock Market? A Qualitative Study

Abstract

German family businesses are increasingly represented on the stock market. In this context, family-business logics such as long-term orientation, family influence and a close connection to the company encounter capital market requirements, including transparency, professionalization and the consideration of external stakeholders. This study examines how German family businesses change as a result of a stock market listing and which of their central characteristics remain despite capital market influence. Methodologically, the study is based on eight semi-structured interviews with executives from listed family businesses, which were analyzed qualitatively. The findings show that a stock market listing changes structures and processes in particular: companies develop capital market-oriented communication and organizational structures, increase transparency, professionalize internal processes and align themselves more strongly with external expectations. At the same time, central characteristics of family businesses remain, especially a long-term strategic orientation, the formative influence of the owning family and a strong entrepreneurial identity. Changes also occur within the owning family, for example through more regulated information flows, clearer decision-making structures and a more conscious approach to operational responsibility. The study contributes to a better understanding of listed family businesses and provides practical recommendations for family businesses considering an initial public offering.

Keywords: family businesses; stock market listing; capital market; organizational change; owning family