How Much Am I Expected to Pay for My Parents’ Firm? An Institutional Logics Perspective on Family Discounts

Thomas Zellweger; Melanie Richards; Philipp Sieger; Pankaj Patel

doi:10.1111/etap.12161

How Much Am I Expected to Pay for My Parents’ Firm? An Institutional Logics Perspective on Family Discounts

Thomas Zellweger, Melanie Richards, Philipp Sieger, Pankaj Patel

University of St. Gallen

Research output: Contribution to journal › Article › peer-review

47 Citations (SciVal)

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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 language	English
Pages (from-to)	1041-1069
Number of pages	29
Journal	Entrepreneurship, Theory and Practice
Volume	40
Issue number	5
Early online date	1 Sept 2016
DOIs	https://doi.org/10.1111/etap.12161
Publication status	Published - 1 Sept 2016

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10.1111/etap.12161

AS6903494627819531541603546281_content_1
Zellweger, Thomas ; Richards, Melanie ; Sieger, Philipp ; Patel, Pankaj. / How Much Am I Expected to Pay for My Parents’ Firm? An Institutional Logics Perspective on Family Discounts. In: Entrepreneurship, Theory and Practice. 2016 ; Vol. 40, No. 5. pp. 1041-1069. Copyright (C) 2015 Baylor University. Reprinted by permission of SAGE Publications.
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How Much Am I Expected to Pay for My Parents’ Firm? An Institutional Logics Perspective on Family Discounts

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