کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
1019469 | 940661 | 2014 | 17 صفحه PDF | دانلود رایگان |
Our quantitative study investigates the determinants of internal versus external exit routes in family firms. Building on information asymmetry theory, we examine how an owner's inferior knowledge about the abilities of potential external entrants (in contrast to family internal successors) renders a family internal transfer more likely. This information asymmetry, however, can be mitigated by activities such as owners' screening and transfer candidates' signaling efforts to reveal the candidates' abilities. Our data exhibits a positive effect of signaling and an inverted U-shaped effect of screening on the probability of external exit routes. Firm age, as a driver of emotional attachment, weakens these effects.
► Owner–entrant relationship, particularly information asymmetry affects exit route.
► We examine the effect of screening/signaling on external vs. internal transfers.
► The positive effect of screening on external exits revolves for extensive screening.
► Emotional attachment diminishes the probability of external transfers.
Journal: Journal of Business Venturing - Volume 29, Issue 2, March 2014, Pages 193–209