The Impact of Relationship Conflict on subjective Family Firm Valuation
Type
conference paper
Date Issued
2010-08-09
Author(s)
Abstract
The present paper empirically investigates the impact of family relationship conflict on subjective firm valuation by family firm owner managers. Drawing on the emerging socioemotional wealth perspective of corporate ownership, we find a U-shaped relationship between relationship conflict inside the family firm and subjective family firm valuation. This finding suggests that negatively valenced emotions induced by the conflict, at low levels of conflict, lead to emotion congruent withdrawal behavior and hence lower valuation. With conflicts gaining in fervor and severity, owner-managers start endowing and pricing sunk costs related to the conflict. This finding suggests that emotions do indeed have spill-over effects on monetary value perceptions and that negatively valenced emotions induced by relationship conflict are not linearly appraised. Rather, to understand the impact of negative emotions on corporate ownership appraisal and attachment it is required to reconcile the emotion congruency with the prospect theory perspective.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
Dare to Care: Passion & Compassion in Management Practice & Research
Publisher
Academy of Management
Publisher place
New York
Volume
Paper Session 1171
Start page
41
Event Title
70th Academy of Management Annual Meeting (AOM) 2010 "Dare to Care"
Event Location
Montréal, Canada
Event Date
06.-10.08.2010
Subject(s)
Eprints ID
61031