Family Firm Value in the Acquisition Context: A Signaling Theory Perspective

Tao-Schuchardt, Martin; Riar, Frederik J.; Kammerlander, Nadine

doi:10.1177/10422587221135761

Cited by 13 publications

(4 citation statements)

References 151 publications

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“…Besides revealing the influencing (and moderating) factors of sales willingness, our study also makes a contribution to family firm exit literature by focusing on strategic investors as potential buyers of family firm shares. Most existing work on minority investments focuses on financial investors that aim to maximize their return by, for instance, substantial cost-cutting measures (Tao-Schuchardt et al ., 2022). This is remarkable because the preferences and portfolio firm-related activities of strategic investors are likely more compatible with the selling family firms (Chiarella and Ostinelli, 2020), especially regarding time horizon, strategic rationale and often socioemotional endowment.…”

Section: Discussionmentioning

confidence: 99%

Should I sell part of my family firm? Exploring the drivers of a minority sale

Kurta

Kammerlander²,

Khoury³

2022

JFBM

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PurposeThis study aims to extend the research in the field of external investments in family firms. It contributes to the literature by analyzing the drivers of the family firm owner-managers selling a minority stake to a strategic investor. This type of external investment might be of great interest to family firms because the family firm owner-managers can secure control over the firm and preserve socioemotional wealth while simultaneously generating additional financing and gaining strategic and managerial know-how. Likewise, minority investments in family firms might also be of high interest to strategic investors, thus enabling close collaborations (e.g. in R&D, purchasing and sales) with minor equity investments.Design/methodology/approachThis study tests the hypotheses using a vignette study leveraging 327 observations from family firm owner-managers.FindingsBased on the socioemotional wealth perspective, this study hypothesizes that the degree of family prominence, the degree of employee orientation and pure family management influence the willingness to sell. In addition, this study hypothesizes that the moderating effect of a below-average financial performance weakens the abovementioned direct effects. This study finds support for most hypotheses.Originality/valueThis study extends the research in the field of external investments in family firms. It contributes to the literature by analyzing the drivers of the family firm owner-managers selling a minority stake to a strategic investor.

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Section: Discussionmentioning

confidence: 99%

Should I sell part of my family firm? Exploring the drivers of a minority sale

Kurta

Kammerlander²,

Khoury³

2022

JFBM

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“…However, different participants could address the research question differently (e.g., NGO representatives), and it could be meaningful to include experts from institutions such as the WHO and WTO to analyze patents and prices, both generally and specifically, in the context of COVID-19. Future research might also consider building on our work by comparing our study's results with insights from other economically important European countries, such as France, Italy, and Spain, or by using other research designs, e.g., quantitative approaches based on secondary data [76]. Herein, technology landscaping via patents may serve as a valuable means to contribute additional insights [22].…”

Section: Limitations and Suggestions For Further Researchmentioning

confidence: 92%

Patents and Sustainable Medical Treatment in Developing Countries: Lessons from COVID-19 Vaccines

Demir

Bican

2023

Sustainability

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COVID-19 has had devastating effects worldwide, and vaccines have become the most efficient solution to address the current pandemic situation thus far. After COVID-19 vaccines had been developed, discussions of the various countries’ equality of access gained traction, with patents and pricing forming a significant part of this discourse. Therefore, this study investigates the impact of patents and prices on the accessibility of COVID-19 vaccines in the developing world, using semi-structured interviews with subject-matter experts in this area of focus. Our analysis of these interviews highlights the fact that patents and prices are not the major barriers to accessibility for medical treatments, both generally and specifically in terms of COVID-19; rather, these barriers relate to the lack of local production capacity, technology transfer, infrastructure, local regulations, and supply-chain competencies. These results suggest that rather than focusing on patents and prices, governments should invest more time in improving technology transfer and using compulsory licenses as a negotiation tool. Moreover, the results show that the pricing strategies applied by companies could have different impacts on access, as could accessibility programs such as COVAX.

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“…Resource dependence theory (RDT) highlights the role of boards as providers of the resources needed to make effective decisions (Sanchez-Famoso et al, 2020), whereas stewardship theory identifies their role as a service to the firm (Lee et al, 2008). Finally, signaling theory focuses on how a BoD reduces information asymmetry and relates it to compliance with governance standards and investments in environmental and social projects, among others (Tao-Schuchardt et al, 2023).…”

Section: Bod and Family Firm Resiliencementioning

confidence: 99%

Board of directors and firm resilience from a social capital perspective

Hurtado,

Herrero

2024

Corp Soc Responsibility Env

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While a vast amount of literature demonstrates the importance of having a board of directors (BoD) for positive firm outcomes, our empirical study based on a wide sample of family firms suggests this is not always the case, and that its impact on firm resilience is contingent on family social capital (FSC). When FSC is high, family members focus on internal governance and frequently reduce the BoD to a symbolic role. Thus, a BoD represents a cost rather than a benefit. In contrast, a BoD is very effective when a firm is poor in FSC and the family firm most resembles a non‐family firm. Consequently, the question is not whether to have a BoD but in which case it can benefit the family firm. Our analysis concludes that family members' involvement in the BoD per se does not enhance a firms' resilience as they have other informal mechanisms that play a similar role. However, executive and independent directors as key board members lead us to conclude that, together with the FSC, the composition of the board affects family firm resilience.

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Family Firm Value in the Acquisition Context: A Signaling Theory Perspective

Cited by 13 publications

References 151 publications

Should I sell part of my family firm? Exploring the drivers of a minority sale

Should I sell part of my family firm? Exploring the drivers of a minority sale

Patents and Sustainable Medical Treatment in Developing Countries: Lessons from COVID-19 Vaccines

Board of directors and firm resilience from a social capital perspective

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