Stuck in the Middle : Socioemotional Wealth, Financial Wealth, and Divestiture Activity in Family Firms
AbstractIn addition to a ‘long list' of industry-, firm-, and unit-specific antecedents, behavioral antecedents for divestiture activity increasingly attract scholarly attention. Not exclusively driven by economic considerations, family firms offer a unique setting to examine behavioral influences on corporate divestiture activity; it is therefore surprising that these firms have been disregarded in divestiture research so far. Based on the concept of socioemotional wealth, this study aims to address this gap. Socioemotional wealth exerts a significant influence on the decision to divest; an inertia toward divestitures in family firms is the consequence. However, this perspective is incomplete: Family owners' considerations on financial wealth concentration counterbalance socioeconomic barriers to divest. The results based on a longitudinal sample confirm the theoretical reasoning and reveal an u-shaped relationship between family ownership and the probability to engage in divestiture activity that is strengthened by performance hazard.
TypeConference or Workshop Item
Dehlen, Tobias: Stuck in the Middle : Socioemotional Wealth, Financial Wealth, and Divestiture Activity in Family Firms. 2012. - 12th European Academy of Management Conference (EURAM) 2012. - Rotterdam.