How Much Am I Expected to Pay for My Parents' Firm? An Institutional Logics Perspective on Family Discounts
Journal
Entrepreneurship Theory and Practice
ISSN
1042-2587
ISSN-Digital
1540-6520
Type
journal article
Date Issued
2015-03-24
Author(s)
Abstract
Recent evidence suggests that successors do not simply inherit their parents' firm, but have to pay a certain price. Building on institutional logics literature, we explore successors' family discount expectations, defined as the rebate expected from parents in comparison to nonfamily buyers when assuming control of the firm. We find that family cohesion increases discount expectations while successors' fear of failure and family equity stake in the firm decrease discount expectations. Higher education in business or economics weakens these effects. On average, in our study comprised of 16 countries, successors expect a 57% family discount.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Wiley-Blackwell SSH
Publisher place
Malden, Mass.
Volume
40
Number
5
Start page
1
End page
43
Subject(s)
Eprints ID
239536
File(s)![Thumbnail Image]()
Name
Family discount_final.pdf
Size
973.31 KB
Format
Adobe PDF
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