Non-financial motivations in mergers and acquisitions: The Fiat–Ferrari case

Most studies of mergers and acquisitions focus on the financial motivations ('synergy') of the acquiring and acquired firms, as well as managers' self-interest and overconfidence. Few studies consider the contextual contingencies that motivate a merger and acquisition. This study examines non-financial motivations that drove the 1969 Fiat company's acquisition of the Ferrari company. The financial records and historical context surrounding this acquisition are analysed through an institutional logics framework, examining annual reports, minutes of board meetings and media coverage of the acquisition. The findings suggest the acquisition was driven by family control, brand reputation and professional expertise, and that financial and accounting motivations had only marginal importance.