Socioemotional wealth and IPO underpricing of family firms

• 成果类型: Article
• 署名作者: Leitterstorf, Max P.; Rau, Sabine B.
• 署名单位: WHU - Otto Beisheim School of Management
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.2236
• 发表日期: 2014
• 页码: 751-760
• 关键词: SOCIOEMOTIONAL WEALTH; IPO; Underpricing; family firm; behavioral agency model

摘要

Socioemotional wealth (SEW), i.e., the noneconomic utility a family derives from its ownership position in a firm, is the primary reference point for family firms. Family firms are willing to sacrifice economic gains in order to preserve their noneconomic utility. Thus, we argue that family firms sacrifice IPO proceeds by choosing higher IPO underpricing than nonfamily firms if underpricing helps them protect their SEW. Our empirical results, based on a sample of 153 German IPOs, support our hypothesis. On average, family firms have 10 percentage points more IPO underpricing than nonfamily firms. Copyright (c) 2014 John Wiley & Sons, Ltd.