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- Title
Value creation in privately held family businesses: The moderating role of socioemotional wealth.
- Authors
Martínez‐Romero, María J.; Rojo‐Ramírez, Alfonso A.; Casado‐Belmonte, María del Pilar
- Abstract
This article examines value creation (VC) in the context of privately held family businesses using a value‐based management approach. Namely, this paper assesses the influence of five value drivers (operating profit margin, sales growth, income tax rate, investment rate, and leverage) on the VC of family firms, considering the moderating effect of socioemotional wealth (SEW). Evidence from a sample of 188 Spanish family firms indicates a positive moderating effect of SEW on the relationship between operating profit margin, sales growth, and investment rate, and VC, leading to increases in the value of firms. The results emphasize that the importance of SEW and its variations imply heterogeneous strategic behaviours among family firms, and that economic and emotional goals might be compatible.
- Subjects
FAMILY-owned business enterprises; VALUE creation; RETURNS on sales; WEALTH; PROFIT margins
- Publication
Canadian Journal of Administrative Sciences (John Wiley & Sons, Inc.), 2020, Vol 37, Issue 3, p283
- ISSN
0825-0383
- Publication type
Article
- DOI
10.1002/cjas.1540