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Presentation
Beyond Family Firm Boundaries: Examining Socioemotional Wealth in Family and Nonfamily Firms
Southern Management Association Proceedings (2014)
  • David Jiang
  • Mary Beth Rousseau, Georgia Southern University
  • Franz W. Kellermanns, University of North Carolina at Charlotte
Abstract

Growing interest in Socioemotional Wealth (SEW), or family firms’ use of emotional value as a decision reference point, can explain why family firms are generally known to make risk averse decisions. However, research suggests that nonfamily firms can also use loss of emotional value as a reference point. Using prospect theory, we apply a SEW perspective to both family and nonfamily firms. We hypothesize that SEW increases with the number of blockholders in management, duration of control, and TMT ownership concentration. Our findings suggest that SEW, as a theory of the family firm, can contribute to the broader management literature.

Keywords
  • Socioemotional wealth,
  • Family firms,
  • Emotional value,
  • Nonfamily firms,
  • Prospect theory
Publication Date
November, 2014
Citation Information
David Jiang, Mary Beth Rousseau and Franz W. Kellermanns. "Beyond Family Firm Boundaries: Examining Socioemotional Wealth in Family and Nonfamily Firms" Southern Management Association Proceedings (2014)
Available at: http://works.bepress.com/mary_beth_rousseau/4/