Can We Afford It? Reference Point Dependent Investment Decisions of Family and Nonfamily Owners
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versione breve
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This study focuses on an issue particularly relevant in these
difficult financial times. Can family businesses afford the risk
associated with making investments that could generate higher
returns? Studies examining financing behavior of family firms report
higher control risk aversion than nonfamily firms, whereby control
risk is measured through leverage levels. We found that family firm
owners\' degree of control risk aversion depends on reference
points. Investment alternatives implying higher leverage levels
become significantly more attractive to family owners when
considered from a secure reference point with low leverage levels,
than when the same investment alternatives are assessed from a less
secure reference point with higher leverage levels. Implications are
discussed
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tipo
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bozza lavoro (English)
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parole chiave
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Family firms, behavioral finance, reference points
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progetto
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Value and Performance in Family Firms
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data di apparenza
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2010
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Editore
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Allied Academies, Whitney Press
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ISSN
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1087-9595
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review
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double-blind review
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citation
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Welsh, D., & Zellweger, T. (2010). Can We Afford It? Reference Point
Dependent Investment Decisions of Family and Nonfamily Owners:
Allied Academies, Whitney Press.
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