The Role of Information Asymmetry for the Choice between Family External and Internal Exit Routes

Item Type Conference or Workshop Item (Paper)
Abstract

In our quantitative study we investigate the antecedents of two distinct exit routes. Building on information asymmetry theory, we discuss that the owner's inferior knowledge about the ability of potential family external (in contrast to family internal) successors renders a family internal transition more likely. However, this information asymmetry can be mitigated by activities such as owners' screening and successors' signaling efforts to unveil the successor's ability. Our data exhibits a positive effect of signaling and an inverted u-shaped effect of screening on the probability of an external succession. Socioemotional wealth, generated by long ownership duration, moderates these effects.

Authors Dehlen, Tobias; Zellweger, Thomas; Halter, Frank; Kammerlander, Nadine & Durst, Susanne
Projects Halter, Frank; Zellweger, Thomas; Frey, Urs; Schröder, Ralf; Sieger, Philipp; Ganter, Melanie; Kammerlander, Nadine & Kissling Streuli, Sonja (2004) Unternehmensnachfolge [fundamental research project] Official URL
Language English
Keywords Succession, entrepreneurial exit, family firms, socioemotional wealth
Subjects business studies
HSG Classification contribution to scientific community
Refereed Yes
Date 26 June 2012
Publisher IFERA c/o College of Business & Management
Place of Publication Springfield IL
Page Range 40
Title of Book Emotional Dynamics in the Family Business: Theory - Practice - Policy
Event Title 12th Annual IFERA World Family Business Research Conference
Event Location Bordeaux
Event Dates 26.-29.06.2012
Depositing User Dr. Tobias Dehlen
Date Deposited 15 Mar 2012 11:08
Last Modified 11 Apr 2018 12:47
URI: https://www.alexandria.unisg.ch/publications/210568

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Citation

Dehlen, Tobias; Zellweger, Thomas; Halter, Frank; Kammerlander, Nadine & Durst, Susanne: The Role of Information Asymmetry for the Choice between Family External and Internal Exit Routes. 2012. - 12th Annual IFERA World Family Business Research Conference. - Bordeaux.

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https://www.alexandria.unisg.ch/id/eprint/210568
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