Do family firms have higher or lower deal valuations? A contextual analysis

Title: Do family firms have higher or lower deal valuations? A contextual analysis
Creator: Haider, Zulfiquer Ali; Li, Jialong; Wang, Yefeng; Wu, Zhenyu
Relation: Entrepreneurship: Theory and Practice Vol. 45, Issue 4, p. 709-739
Publisher Link: http://dx.doi.org/10.1177/1042258720910950
Publisher: Sage Publications
Resource Type: journal article
Date: 2021
Description: How does the socioemotional wealth (SEW) of a family firm affect its deal valuation in acquisition? Using a sample of 515 completed transactions of S&P 500 firms over the period 2003–2016, we examine a number of contexts and find that SEW creates differential valuations of targets by family firms vis-à-vis non-family firms. Particularly from an internationalization perspective, acquisitions may be an ideal option for family firms because foreign acquisitions may be loosely coupled from the core firm. Post-hoc analyses on the heterogeneity in family governance reveal that founder and descendant board chairs may have different perceptions of SEW.
Identifier: http://hdl.handle.net/1959.13/1432138
Identifier: uon:39021
Identifier: ISSN:1042-2587
Language: eng
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