Socioemotional wealth’s implications in the calculus of the minimum rate of return required by family businesses’ owners

José Martínez Romero Mª () and Alfonso A. Rojo Ramírez ()
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José Martínez Romero Mª: University of Almería
Alfonso A. Rojo Ramírez: University of Almería

Review of Managerial Science, 2017, vol. 11, issue 1, No 4, 95-118

Abstract: Abstract This paper demonstrates that the minimum rate of return (k e ) required by family business shareholders is inversely related to the emotional endowment presented in these firms. After reviewing the socioemotional wealth (SEW) literature, we find empirical support to justify that different SEW dimensions influence k e . Findings from a population of 207 family firms show that the identification of family members with the firm and the renewal of family bonds with the firm through dynastic succession have consistently negative impacts on k e , while family control and influence have significantly positive impacts on k e .

Keywords: SEW; Minimum rate of return; Total value; Emotional value; Financial value (search for similar items in EconPapers)
JEL-codes: G32 L21 L25 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s11846-015-0181-9

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