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

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Family Control and Family Firm Valuation by Family CEOs: The Importance of Intentions for Transgenerational Control. / Zellweger, Thomas M.; Kellermanns, Franz W.; Chrisman, James J. et al.
In: Organization Science, Vol. 23, No. 3, 01.05.2012, p. 851-868.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Zellweger, TM, Kellermanns, FW, Chrisman, JJ & Chua, JH 2012, 'Family Control and Family Firm Valuation by Family CEOs: The Importance of Intentions for Transgenerational Control', Organization Science, vol. 23, no. 3, pp. 851-868. https://doi.org/10.1287/orsc.1110.0665

APA

Zellweger, T. M., Kellermanns, F. W., Chrisman, J. J., & Chua, J. H. (2012). Family Control and Family Firm Valuation by Family CEOs: The Importance of Intentions for Transgenerational Control. Organization Science, 23(3), 851-868. https://doi.org/10.1287/orsc.1110.0665

Vancouver

Zellweger TM, Kellermanns FW, Chrisman JJ, Chua JH. Family Control and Family Firm Valuation by Family CEOs: The Importance of Intentions for Transgenerational Control. Organization Science. 2012 May 1;23(3):851-868. doi: 10.1287/orsc.1110.0665

Author

Zellweger, Thomas M. ; Kellermanns, Franz W. ; Chrisman, James J. et al. / Family Control and Family Firm Valuation by Family CEOs: The Importance of Intentions for Transgenerational Control. In: Organization Science. 2012 ; Vol. 23, No. 3. pp. 851-868.

Bibtex

@article{66dfb8713b004bc581f112f19a831bf1,
title = "Family Control and Family Firm Valuation by Family CEOs: The Importance of Intentions for Transgenerational Control",
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. ",
keywords = "endowment effect , prospect theory , family business , socioemotional wealth, transgenerational control , firm valuation",
author = "Zellweger, {Thomas M.} and Kellermanns, {Franz W.} and Chrisman, {James J.} and Chua, {Jess H.}",
year = "2012",
month = may,
day = "1",
doi = "10.1287/orsc.1110.0665",
language = "English",
volume = "23",
pages = "851--868",
journal = "Organization Science",
issn = "1047-7039",
publisher = "INFORMS Inst.for Operations Res.and the Management Sciences",
number = "3",

}

RIS

TY - JOUR

T1 - Family Control and Family Firm Valuation by Family CEOs: The Importance of Intentions for Transgenerational Control

AU - Zellweger, Thomas M.

AU - Kellermanns, Franz W.

AU - Chrisman, James J.

AU - Chua, Jess H.

PY - 2012/5/1

Y1 - 2012/5/1

N2 - 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.

AB - 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.

KW - endowment effect

KW - prospect theory

KW - family business

KW - socioemotional wealth

KW - transgenerational control

KW - firm valuation

U2 - 10.1287/orsc.1110.0665

DO - 10.1287/orsc.1110.0665

M3 - Journal article

VL - 23

SP - 851

EP - 868

JO - Organization Science

JF - Organization Science

SN - 1047-7039

IS - 3

ER -