Intergenerational Transfer of Family Firm Control: Discount Expectations of Potential Successors
Type
conference paper
Date Issued
2013-08-09
Author(s)
Abstract
Building on institutional theory and family sociology literature we explore the logics that underlie the formation of transaction price expectations related to the intergenerational transfer of corporate ownership in private family firms. By probing a sample of 3'487 students with family business background from 20 countries we show that next generation family members expect to receive a 56.58% discount in comparison to some nonfamily buyer (i.e. the family discount) when taking over the parent's firm. We also show that the logic underlying the formation of family discount expectations is characterized by parental altruism, filial reciprocity, filial decency and parental inducement. These norms embrace both the family and market logics and accommodate the duties and demands of children and parents in determining a fair transfer price. These findings are important for institutional theory as well as for family business and entrepreneurial exit literatures.
Language
English
Keywords
Family business
institutional logics
family discount
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
Capitalism in Question
Publisher
Academy of Management
Publisher place
New York
Start page
1
End page
40
Pages
40
Event Title
73rd Academy of Management Annual Meeting (AOM) 2013 "Capitalism in Question"
Event Location
Orlando, FL
Event Date
09.-13.08.2013
Subject(s)
Eprints ID
222165