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Family Control and Family Firm Valuation by Family CEOs: The Importance of Intentions for Transgenerational Control

Zellweger, Thomas M. and Kellermanns, Franz W. and Chrisman, James J. and Chua, Jess H. (2012) Family Control and Family Firm Valuation by Family CEOs: The Importance of Intentions for Transgenerational Control. Organization Science, 23 (3). pp. 851-868. ISSN 1047-7039

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    Abstract

    Family firms are thought to pursue nonfinancial goals that provide socioemotional wealth, but socioemotional wealth is feasible only with family control of the firm. Using prospect theory, we hypothesize that socioemotional wealth increases with the extent of current control, duration of control, and intentions for transgenerational control, thus adding to the price at which owners would be willing to sell their firms to nonfamily buyers. Findings from two countries show that current control has no impact, and duration of control has a mixed impact. However, intention for transgenerational control has a consistently positive impact on the perceived acceptable selling price.

    Item Type: Article
    Journal or Publication Title: Organization Science
    Uncontrolled Keywords: endowment effect ; prospect theory ; family business ; socioemotional wealth ; transgenerational control ; firm valuation
    Subjects:
    Departments: Lancaster University Management School > Institute for Enterprise & Entrepeneurial Development (IEED)
    ID Code: 64520
    Deposited By: ep_importer_pure
    Deposited On: 16 May 2013 10:16
    Refereed?: Yes
    Published?: Published
    Last Modified: 24 Nov 2017 05:16
    Identification Number:
    URI: http://eprints.lancs.ac.uk/id/eprint/64520

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