The role of information asymmetry in the choice of entrepreneurial exit routes

Journal of Business Venturing

Volumn 29, Issue 2, 2014, Pages 193-209

  Dehlen, Tobias ^a   Zellweger, Thomas ^a   Kammerlander, Nadine ^a   Halter, Frank ^a  

^a UNIVERSITY OF ST GALLEN   (Switzerland)

Author keywords

Emotional attachment; Entrepreneurial exit; Exit routes; Information asymmetry; Succession

Indexed keywords

EID: 84892883050     PISSN: 08839026     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbusvent.2012.10.001     Document Type: Article

References (122)

1. Aguinis H. Statistical power with moderated multiple regression in management research. Journal of Management 1995, 21:1141-1158.
2. Aidis R., Van Praag M. Illegal entrepreneurship experience: does it make a difference for business performance and motivationα. Journal of Business Venturing 2007, 22:283-310.
3. Aiken L.S., West S.G. Multiple Regression: Testing and Interpreting Interactions 1991, Sage, Newbury Park, CA.
4. Akerlof G.A. The market for "lemons": quality uncertainty and the market mechanism. Quarterly Journal of Economics 1970, 84:488-500.
5. Arthurs J.D., Busenitz L.W., Hoskisson R.E., Johnson R.A. Signaling and initial public offerings: the use and impact of the lockup period. Journal of Business Venturing 2009, 24:360-372.
6. Backes-Gellner U., Werner A. Entrepreneurial signaling via education: a success factor in innovative start-ups. Small Business Economics 2007, 29:173-190.
7. Barach J.A., Gantisky J., Carson J.A., Doochin B.A. Entry of the next generation: strategic challenge for family business. Journal of Small Business Management 1988, 26:49-56.
8. Belk R.W. Possessions and the extended self. Journal of Consumer Research 1988, 15:139-168.
9. Berrone P., Cruz C., Gómez-Mejía L.R., Larraza-Kintana M. Socioemotional wealth and corporate responses to institutional pressures: do family-controlled firms pollute lessα. Administrative Science Quarterly 2010, 55:82-113.
10. Berrone P., Cruz C., Gómez-Mejía L.R. Socioemotional wealth in family firms: theoretical dimensions, assessment approaches, and agenda for future research. Family Business Review 2012, 25:258-279.
11. Birley S., Westhead P. The owner-managers exit route. Entrepreneurship and Business Development 1993, Gower, Avebury. H. Klandt (Ed.).
12. Bocatto E., Gispert C., Rialp J. Family-owned business succession: the influence of pre-performance in the nomination of family and nonfamily members: evidence from Spanish firms. Journal of Small Business Management 2010, 48:497-523.
13. Boyce R.R., Brown T.C., McClelland G.H., Peterson G.L., Schulze W.D. An experimental examination of intrinsic values as a source of the WTA-WTP disparity. American Economic Review 1992, 82:1366-1373.
14. Burmeister K., Schade C. Are entrepreneurs' decisions more biasedα An experimental investigation of the susceptibility to status quo bias. Journal of Business Venturing 2007, 22:340-362.
15. Capron L., Shen J.C. Acquisitions of private vs. public firms: private information, target selection, and acquirer returns. Strategic Management Journal 2007, 28:891-911.
16. Cardon M.S., Zietsma C., Saparito P., Matherne B.P., Davis C. A tale of passion: new insights into entrepreneurship from a parenthood metaphor. Journal of Business Venturing 2005, 20:23-45.
17. Carpentier C., L'Her J.-F., Suret J.-M. Stock exchange markets for new ventures. Journal of Business Venturing 2010, 25:403-422.
18. Carter N., Brush C., Greene P., Gatewood E., Hart M. Women entrepreneurs who break through to equity financing: the influence of human, social and financial capital. Venture Capital: an international journal of entrepreneurial finance 2003, 5:1-28.
19. Chandler A.D. Scale and Scope: The Dynamics of Industrial Capitalism 1990, Belknap Press, Cambridge, MA.
20. Chang S.J., Van Witteloostuijn A., Eden L. From the Editors: common method variance in international business research. Journal of International Business Studies 2010, 41:178-184.
21. Chrisman J.J., Patel P. Variations in R&D investments of family and non-family firms: behavioral agency and myopic loss aversion perspectives. Academy of Management Journal 2012, 55. n/a.
22. Chrisman J.J., Chua J.H., Litz R.A. A unified systems perspective of family firm performance: an extension and integration. Journal of Business Venturing 2003, 18:467-472.
23. Chrisman J.J., Chua J.H., Litz R.A. Comparing the agency costs of family and non-family firms: conceptual issues and exploratory evidence. Entrepreneurship Theory and Practice 2004, 28:335-354.
24. Chrisman J.J., Chua J.H., Kellermanns F.W., Chang E.P.C. Are family managers agents or stewardsα An exploratory study in privately held family firms. Journal of Business Research 2007, 60:1030-1038.
25. Chua J.H., Chrisman J.J., Sharma P. Defining the family business by behavior. Entrepreneurship Theory and Practice 1999, 23:19-39.
26. Cohen B.D., Dean T.J. Information asymmetry and investor valuation of IPOs: top management team legitimacy as a capital market signal. Strategic Management Journal 2005, 26:683-690.
27. Connelly B.L., Certo S.T., Ireland R.D., Reutzel C.R. Signaling theory: a review and assessment. Journal of Management 2011, 37:39-67.
28. Corbetta G., Salvato C. Self-serving or self-actualizingα Models of man and agency costs in different types of family firms: a commentary on "Comparing the agency costs of family and non-family firms: conceptual issues and exploratory evidence". Entrepreneurship Theory and Practice 2004, 28:355-362.
29. Cruz C., Justo R., De Castro J.O. Does family employment enhance MSEs performanceα: Integrating socioemotional wealth and family embeddedness perspectives. Journal of Business Venturing 2010.
30. Cruz C.C., Gómez-Mejía L.R., Becerra M. Perceptions of benevolence and the design of agency contracts: CEO-TMT relationships in family firms. Academy of Management Journal 2010, 53:69-89.
31. Cyert R.M., March J.G. A Behavioral Theory of the Firm 1963, Prentice-Hall, Englewood Cliffs, NJ. 1st ed.
32. Dalal D.K., Zickar M.J. Some common myths about centering predictor variables in moderated multiple regression and polynomial regression. Organizational Research Methods 2012, 15:339-362.
33. Dawson A. Private equity investment decisions in family firms: the role of human resources and agency costs. Journal of Business Venturing 2011, 26:189-199.
34. De Massis A., Chua J.H., Chrisman J.J. Factors preventing intra-family succession. Family Business Review 2008, 21:183-199.
35. DeTienne D.R. Entrepreneurial exit as a critical component of the entrepreneurial process: theoretical development. Journal of Business Venturing 2010, 25:203-215.
36. DeTienne D.R., Cardon M. Impact of founder experience on exit intentions. Small Business Economics 2012, 38:351-374.
37. DeTienne D.R., Chandler G.N. The impact of motivation and causation and effectuation approaches on exit strategies. Frontiers of Entrepreneurship Research 2010, 30:1-13.
38. Eddleston K.A., Kellermanns F.W., Zellweger T.M. Exploring the entrepreneurial behavior of family firms: does the stewardship perspective explain differencesα. Entrepreneurship Theory and Practice 2012, 36:347-367.
39. Fama E.F. Agency problems and the theory of the firm. Journal of Political Economy 1980, 88:288-307.
40. Farber H.S., Gibbons R. Learning and wage dynamics. Quarterly Journal of Economics 1996, 111:1007-1047.
41. Folta T.B., O'Brien J.P. Entry in the presence of dueling options. Strategic Management Journal 2004, 25:121-138.
42. Garen J.E. Worker heterogeneity, job screening, and firm size. Journal of Political Economy 1985, 93:715-739.
43. Gersick K.E., Davis J.A., McCollom Hampton M., Lansberg I. Generation to Generation: Life Cycles of the Family Business 1997, Harvard Business School Press, Boston, MA.
44. Gómez-Mejía L.R., Takács Haynes K., Núnez-Nickel M., Jacobson K.J.L., Moyano-Fuentes J. Socioemotional wealth and business risks in family-controlled firms: evidence from Spanish olive oil mills. Administrative Science Quarterly 2007, 52:106-137.
45. Gómez-Mejía L.R., Cruz C., Berrone P., Castro J. The bind that ties: socioemotional wealth preservation in family firms. The Academy of Management Annals 2011, 5:653-707.
46. Graebner M.E. Caveat venditor: trust asymmetries in acquisitions of entrepreneurial firms. Academy of Management Journal 2009, 52:435-472.
47. Graebner M.E., Eisenhardt K.M. The seller's side of the story: acquisition as courtship and governance as syndicate in entrepreneurial forms. Administrative Science Quarterly 2004, 49:366-403.
48. Grayson K., Shulman D. Indexicality and the verification function of irreplaceable possessions: a semiotic analysis. Journal of Consumer Research 2000, 17-30.
49. Hair J.F., Black B., Babin B., Anderson R.E., Tatham R.L. Multivariate Data Analysis 2006, Prentice Hall. 6th ed.
50. Halter, F., Dehlen, T., Sieger, P., Wolter, H.J. forthcoming. Informationsasymmetrien zwischen Übergeber und Nachfolger: Herausforderungen und Lösungsmöglichkeiten am Beispiel des Management Buy Ins in Familienunternehmen. Zeitschrift für KMU und Entrepreneurship.
51. Heckman J.J. Sample selection bias as a specification error. Econometrica 1979, 47:153-161.
52. Hitt M.A., Tyler B.B. Strategic decision models: integrating different perspectives. Strategic Management Journal 1991, 12:327-351.
53. Hoetker G. The use of logit and probit models in strategic management research: critical issues. Strategic Management Journal 2007, 28:331-343.
54. Holmstrom B. Managerial Incentive Problems - A Dynamic Perspective. Essays in Economics and Management in Honor of Lars Wahlbeck 1982, 209-230. Swedish School of Economics.
55. Howorth C., Westhead P., Wright M. Buyouts, information asymmetry and the family management dyad. Journal of Business Venturing 2004, 19:509-534.
56. Jain B.A., Tabak F. Factors influencing the choice between founder versus non-founder CEOs for IPO firms. Journal of Business Venturing 2008, 23:21-45.
57. Janney J.J., Folta T.B. Signaling through private equity placements and its impact on the valuation of biotechnology firms. Journal of Business Venturing 2003, 18:361-380.
58. Janney J.J., Folta T.B. Moderating effects of investor experience on the signaling value of private equity placements. Journal of Business Venturing 2006, 21:27-44.
59. Jensen M.C. Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review 1986, 76:323-329.
60. Jiang C.X., Zimmerman M.A., Guo G.C. Growth of women-owned businesses: the effects of intangible resources and social competence. Journal of business Diversity 2012, 12:47-71.
61. Justo R., DeTienne D.R. Family situation and the exit event: an extension of threshold theory. Frontiers of Entrepreneurship Research 2008, 28:1-13.
62. Kahneman D., Tversky A. Prospect theory: an analysis of decision under risk. Econometrica 1979, 47:263-291.
63. Kellermanns F.W., Eddleston K., Barnett T., Pearson A.W. An exploratory study of family member characteristics and involvement: effects on entrepreneurial behavior in the family firm. Family Business Review 2008, 21:1-14.
64. Kim P.H., Aldrich H.E., Keister L.A. Access (not) denied: the impact of financial, human, and cultural capital on entrepreneurial entry in the United States. Small Business Economics 2006, 27:5-22.
65. Knetsch J.L. The endowment effect and evidence of nonreversible indifference curves. American Economic Review 1989, 79:1277-1284.
66. Koenig, A., Kammerlander, N., Enders, A. The family innovator's dilemma: how family influence affects the adoption of discontinuous technologies by incumbent firms. Academy of Management Review, forthcoming.
67. Kreps D.M. Intrinsic motivation and extrinsic incentives. American Economic Review 1997, 87:359-364.
68. Kumar N., Stern L.W., Anderson J.C. Conducting interorganizational research using key in-formants. Academy of Management Journal 1993, 36:1633-1651.
69. Le Breton-Miller I., Miller D., Steier L.P. Toward an integrative model of effective FOB succession. Entrepreneurship Theory & Practice 2004, 28:305-328.
70. Lee J.-H., Venkataraman S. Aspirations, market offerings, and the pursuit of entrepreneurial opportunities. Journal of Business Venturing 2006, 21:107-123.
71. Lee K.S., Lim G.H., Lim W.S. Family business succession: appropriation risk and choice of successor. Academy of Management Review 2003, 28:657-666.
72. Li J.T., Tang Y. CEO hubris and firm risk taking in China: the moderating role of managerial discretion. Academy of Management Journal 2010, 53:45-68.
73. Long S., Freese J. Regression Models for Categorical Dependent Variables using Stata 2005, Stata Press.
74. Lord C.G., Ross L., Lepper M.R. Biased assimilation and attitude polarization: the effects of prior theories on subsequently considered evidence. Journal of Personality and Social Psychology 1979, 37:2098.
75. Mas-Colell A., Whinston M.D., Green J.R. Microeconomic Theory 1995, Oxford University Press, New York City, New York.
76. Mishina Y., Dykes B.J., Block E.S., Pollock T.G. Why "good" firms do bad things: the effects of high aspirations, high expectations, and prominence on the incidence of corporate illegality. Academy of Management Journal 2010, 53:701-722.
77. Morris M.H., Williams R.O. Correlates of success in family business transitions. Journal of Business Venturing 1997, 12:385-401.
78. Niedermeyer C., Jaskiewicz P., Klein S.B. 'Can't get no satisfactionα' Evaluating the sale of the family business from the family's perspective and deriving implications for new venture activities. Entrepreneurship and Regional Development 2010, 22:293-320.
79. Oppenheim A.N. Questionnaire Design and Attitude Measurement 1966, Free Press, New York.
80. Palfrey T.R., Spatt C.S. Repeated insurance contracts and learning. The Rand Journal of Economics 1985, 16:356-367.
81. Parker S.C., Van Praag C.M. The entrepreneur's mode of entry: business takeover or new venture startα. Journal of Business Venturing 2012, 27:31-46.
82. Petty J. Harvesting firm value: process and results. Entrepreneurship 2000 1997, Upstart, Chicago. D.L. Sexton, R.W. Smilor (Eds.).
83. Podsakoff P.M., Organ D.W. Self-reports in organizational research: problems and perspectives. Journal of Management 1986, 12:531-544.
84. Podsakoff P.M., MacKenzie S.B., Lee J.-Y., Podsakoff N.P. Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology 2003, 88:879-903.
85. Reuber A.R., Fischer E.M. Entrepreneurs' experience, expertise, and the performance of technology-based firms. IEEE Transactions on Engineering Management 1994, 41:365-374.
86. Riley J.G. Testing the educational screening hypothesis. Journal of Political Economy 1979, 87:S227-S252.
87. Royer S., Simons R., Boyd B., Rafferty A. Promoting family: a contingency model of family business succession. Family Business Review 2008, 21:15-30.
88. Rubin D.B. Multiple Imputation for Nonresponse in Surveys 1987, Wiley Online Library.
89. Salvato C., Chirico F., Sharma P. A farewell to the business: championing exit and continuity in entrepreneurial family firms. Entrepreneurship and Regional Development 2010, 22:321-348.
90. Schafer J.L. Multiple imputation: a primer. Statistical Methods in Medical Research 1999, 8:3-15.
91. Schafer J.L., Graham J.W. Missing data: our view of the state of the art. Psychological Methods 2002, 7:147-177.
92. Scholes L., Wright M., Westhead P., Burrows A., Bruining H. Information sharing, price negotiation and management buy-outs of private family-owned firms. Small Business Economics 2007, 29.
93. Scholes L., Westhead P., Burrows A. Family firm succession: the management buy-out and buy-in routes. Journal of Small Business and Enterprise Development 2008, 15:8-29.
94. Schulze W.S., Lubatkin M.H., Dino R.N., Buchholtz A.K. Agency relationships in family firms: theory and evidence. Organization Science 2001, 12:99-116.
95. Seidler J. On using key informants: a technique for collecting quantitative data and controlling measurement error in organization analysis. American Sociological Review 1974, 39:816-831.
96. Sharma P., Manikutty S. Strategic divestments in family firms: role of family structure and community culture. Entrepreneurship Theory and Practice 2005, 29:293-311.
97. Sharma P., Chrisman J.J., Chua J.H. Predictors of satisfaction with the succession process in family firms. Journal of Business Venturing 2003, 18:667-687.
98. Sharma P., Chrisman J.J., Gersick K.E. 25 years of family business review: reflections on the past and perspectives for the future. Family Business Review 2012, 25:5-15.
99. Spence M. Job market signaling. Quarterly Journal of Economics 1973, 87:355-374.
100. Spence M. Informational aspects of market structure: an introduction. Quarterly Journal of Economics 1976, 90:591-597.
101. Sternberg L., Lückgen I. Global Entrepreneurship - German Report 2005, Cologne, Germany.
102. Stiglitz J.E. The theory of "screening," education, and the distribution of income. The American Economic Review 1975, 65:283-300.
103. Stiglitz J.E. Symposium on economics of information: introduction. Review of Economic Studies 1977, 44:389-391.
104. Stiglitz J.E. The contributions of the economics of information to twentieth century economics. Quarterly Journal of Economics 2000, 115:1441-1478.
105. Tabachnick B.G., Fidell L.S. Using Multivariate Statistics 1996, HarperCollins College Publishers, New York. 3rd ed.
106. Tourangeau R., Rips L.J., Rasinski K. The Psychology of Survey Response 2000, Cambridge University Press, Cambridge, England.
107. Unger J.M., Keith N., Hilling C., Gielnik M.M., Frese M. Deliberate practice among South African small business owners: relationships with education, cognitive ability, knowledge, and success. Journal of Occupational and Organizational Psychology 2009, 82:21-44.
108. Unger J.M., Rauch A., Frese M., Rosenbusch N. Human capital and entrepreneurial success: a meta-analytical review. Journal of Business Venturing 2011, 26:341-358.
109. Volery T., Bergmann H., Gruber M., Haour G., Leleux B. Global Entrepreneurship Monitor - Swiss Report 2007, St. Gallen, Switzerland.
110. Ward J.L. Keeping the Family Business Healthy 1987, Jossey-Bass, San Francisco, CA.
111. Wennberg K., Wiklund J., DeTienne D.R., Cardon M.S. Reconceptualizing entrepreneurial exit: divergent exit routes and their drivers. Journal of Business Venturing 2010, 25:361-375.
112. Wennberg K., Wiklund J., Hellerstedt K., Nordqvist M. Implications of intra-family and external ownership transfer of family firms: short-term and long-term performance differences. Strategic Entrepreneurship Journal 2011, 5:352-372.
113. Westhead P. Succession decision-making outcomes reported by private family companies. International Small Business Journal 2003, 21:369-401.
114. Westphal J.D., Zajac E.J. Who shall governα CEO/board power, demographic similarity, and new director selection. Administrative Science Quarterly 1995, 40:60-83.
115. Wiersema M.F., Bantel K.A. Top management team demography and corporate strategic change. Academy of Management Journal 1992, 35:91-121.
116. Wiersema M.F., Bowen H.P. The use of limited dependent variable techniques in strategy research: issues and methods. Strategic Management Journal 2009, 30:679-692.
117. Wiseman R.M., Gómez-Mejía L.R. A behavioral agency model of managerial risk taking. Academy of Management Review 1998, 23:133-153.
118. Zajac E.J. CEO selection, succession, compensation and firm performance: a theoretical integration and empirical analysis. Strategic Management Journal 1990, 11:217-230.
119. Zellweger T.M., Kellermanns F.W., Chrisman J.J., Chua J.H. Family control and family firm valuations by family CEOs: the importance of intentions for transgenerational control. Organization Science 2012, 23:851-868.
120. Zelner B.A. Using simulation to interpret results from logit, probit, and other nonlinear models. Strategic Management Journal 2009, 30:1335-1348.
121. Zhang Y. Information asymmetry and the dismissal of newly appointed CEOs: an empirical investigation. Strategic Management Journal 2008, 29:859-872.
122. Zhang Y., Wiersema M.F. Stock market reaction to CEO certification: the signaling role of CEO background. Strategic Management Journal 2009, 30:693-710.