Skip to content Skip to navigation
University of Warwick
  • Study
  • |
  • Research
  • |
  • Business
  • |
  • Alumni
  • |
  • News
  • |
  • About

University of Warwick
Publications service & WRAP

Highlight your research

  • WRAP
    • Home
    • Search WRAP
    • Browse by Warwick Author
    • Browse WRAP by Year
    • Browse WRAP by Subject
    • Browse WRAP by Department
    • Browse WRAP by Funder
    • Browse Theses by Department
  • Publications Service
    • Home
    • Search Publications Service
    • Browse by Warwick Author
    • Browse Publications service by Year
    • Browse Publications service by Subject
    • Browse Publications service by Department
    • Browse Publications service by Funder
  • Help & Advice
University of Warwick

The Library

  • Login
  • Admin

When do family firms consider issuing external equity? Understanding the contingent role of families’ need for control

Tools
- Tools
+ Tools

Kupp, Martin, Schmitz, Bianca and Habel, Johannes (2019) When do family firms consider issuing external equity? Understanding the contingent role of families’ need for control. Journal of Family Business Management, 9 (3). pp. 271-296. doi:10.1108/JFBM-08-2018-0021 ISSN 2043-6238.

[img]
Preview
PDF
WRAP-family-firms-consider-issuing-external-equity-Habel-2019.pdf - Accepted Version - Requires a PDF viewer.

Download (1071Kb) | Preview
Official URL: https://doi.org/10.1108/JFBM-08-2018-0021

Request Changes to record.

Abstract

Prior research has argued that family firms are reluctant to consider external equity as a source of financing because they fear a loss of control, which would limit their socioemotional wealth. However, prior empirical research has neglected potential contingencies that determine whether family firms’ need for control affects their equity financing decisions. The present paper provides first insight into this research void. Building on rational choice theory and a logit regression using secondary data, the authors show that the effect of family firm owners’ need for control on their consideration of external equity depends on (a) the extent to which owners expect investors to interfere with management and (b) the extent to which decision making is affected by emotions. Hereby, the present study provides evidence that family firm owners’ decisions to use external equity are more complex than previously presumed.

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Social Sciences > Warwick Business School > Marketing Group
Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH): Family-owned business enterprises, Equity
Journal or Publication Title: Journal of Family Business Management
Publisher: Emerald
ISSN: 2043-6238
Official Date: 2019
Dates:
DateEvent
2019Available
3 February 2019Accepted
Volume: 9
Number: 3
Page Range: pp. 271-296
DOI: 10.1108/JFBM-08-2018-0021
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access
Copyright Holders: Copyright © 2019, Emerald Publishing Limited
Date of first compliant deposit: 20 March 2019
Date of first compliant Open Access: 4 April 2019
Related URLs:
  • Publisher

Request changes or add full text files to a record

Repository staff actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics

twitter

Email us: wrap@warwick.ac.uk
Contact Details
About Us