How much am I expected to pay for my parents' firm? An institutional logics perspective on family discounts.

Thomas Zellweger, Melanie Ganter, Philipp Sieger, Pankaj Patel

Research output: Contribution to journalArticle (Academic Journal)peer-review

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Abstract

Recent evidence suggests that successors do not simply inherit their parents’ firm, but have to pay a certain price. Building on institutional logics literature, we explore successors’ family discount expectations, defined as the rebate expected from parents in comparison to nonfamily buyers when assuming control of the firm. We find that family cohesion increases discount expectations, while successors’ fear of failure and family equity stake in the firm decrease discount expectations. Higher education in business or economics weakens these effects. On average, in our study comprised of 16 countries, successors expect a 57% family discount.
Original languageEnglish
Pages (from-to)1041-1069
Number of pages29
JournalEntrepreneurship Theory and Practice
Volume40
Issue number5
Early online date1 Sep 2016
DOIs
Publication statusPublished - 4 Dec 2017

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