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Value and Performance in Family Firms
Type
fundamental research project
Start Date
14 February 2002
End Date
2020
Status
ongoing
Keywords
Emotional Value
Willingness to Accept
Socioemotional Value
Description
Family firms are known to strive not solely for financial returns. In this project we investigate how socioemotional returns are valued by owners of family firms and how they effect managerial decisions
Leader contributor(s)
Partner(s)
Thomas Zellweger, Philipp Sieger, Franz Kellermanns
Funder(s)
Topic(s)
Emotional Value
Socioemotional Wealth
Performance
Method(s)
Quantitative cross-sectional
time series analysis
Range
HSG Internal
Range (De)
HSG Intern
Division(s)
Eprints ID
6456
30 results
Now showing
1 - 10 of 30
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PublicationType: book section
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PublicationType: newspaper articleJournal: Neue Zürcher Zeitung NZZVolume: 227
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PublicationA note on socioemotional wealth as a determinant of family firm valuations by family owners( 2008-07-02)
;Kellermanns, Franz W. ;Chrisman, James J.Chua, Jess H.Type: conference paper -
PublicationCan We Afford It? Reference Point Dependent Investment Decisions of Family and Nonfamily OwnersThis 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 discussedType: working paper
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PublicationFamily Firm Valuation by Family Firm CEOs( 2008-11-23)
;Kellermanns, Franz W. ;Chrisman, James J.Chua, Jess H.Type: conference paper -
PublicationType: conference paper
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PublicationReference Point-Dependent Investment Decisions of Family and Non-family Owners(Budrich UniPress Ltd., 2010)
;Welsh, Dianne ;Surdej, AleksanderWach, KrzysztofStudies examining leverage levels of family firms report a rather uniform picture: be they large or small, publicly quoted or privately held, family firms exhibit lower leverage levels than their non-family counterparts (e.g., Agrawal & Nagarajan, 1990; Villalonga & Amit, 2006; Mishra & McConaughy, 1999; Gallo & Vilaseca, 1996). While these findings are consistent with the stereotype of the financially conservative and risk-adverse family firm, they also suggest that the majority of these firms have a suboptimal capital structure that relies heavily on internally generated capital. This has the effect of not only inflating these firms' average cost of capital and suppressing their value, but also limiting the rate of firm growth to the growth of internally generated assets (Schulze & Dino, 1998). These preconditions seem to make family firms ripe candidates for underinvestment; which undermines their competitive position and, ultimately, threatens their very survival. However, the predominant role of family firms in the economic landscape stands in strong contrast to these predictions. In fact, family firms are at the forefront of many industries, challenging the assumption that these firms should be permanently risk-adverse. In reality, risk taking and funding of risky investments, such as R&D, are necessary for a firm's long-term survival (Gedajlovic, Lubatkin, & Schulze, 2004). In this context, our study sets out to shed some light on the risk-taking propensity of family firm owners. The study focuses on the control risk propensity of family firm owners, measured in terms of the leverage levels of the firms they control (Mishra & cConaughy, 1999).Type: book section -
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PublicationType: conference paper
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