Required and obtained equity returns in privately held businesses: the impact of family nature—evidence before and after the global economic crisis
This paper analyses the impact that family businesses have on the minimum rate of return required by owner-investors (ke) and on the equity returns (ROEaT) obtained in privately held businesses. This influence is analysed for an economic growth period (2002-2007) and for a crisis period (2008-2013)...
| Main Authors: | , |
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| Format: | info:eu-repo/semantics/article |
| Language: | English |
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Springer
2023
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10835/14848 |
| _version_ | 1789406597034803200 |
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| author | Rojo Ramírez, Alfonso Andrés Martínez Romero, María José |
| author_facet | Rojo Ramírez, Alfonso Andrés Martínez Romero, María José |
| author_sort | Rojo Ramírez, Alfonso Andrés |
| collection | DSpace |
| description | This paper analyses the impact that family businesses have on the minimum rate of return required by owner-investors (ke) and on the equity returns (ROEaT) obtained in privately held businesses. This influence is analysed for an economic growth period (2002-2007) and for a crisis period (2008-2013) in the European context. Moreover, our study also explores the family nature through the heterogeneity among family firms in their required and obtained equity returns by considering the degree of family involvement in the ownership and management. Our findings reveal that while family businesses always have a negative and significant impact on ke regardless of the economic environment, they only have a positive and significant impact on ROEaT in economic upturns. Thus, non-economic goals do not necessarily imply underperformance but may involve a lower cost of equity capital in privately held family businesses than in privately held non-family businesses, which also leads to differences in the value creation. |
| format | info:eu-repo/semantics/article |
| id | oai:repositorio.ual.es:10835-14848 |
| institution | Universidad de Cuenca |
| language | English |
| publishDate | 2023 |
| publisher | Springer |
| record_format | dspace |
| spelling | oai:repositorio.ual.es:10835-148482023-12-19T09:44:08Z Required and obtained equity returns in privately held businesses: the impact of family nature—evidence before and after the global economic crisis Rojo Ramírez, Alfonso Andrés Martínez Romero, María José Privately held businesses Family nature Minimum rate of return Return on equity Value creation Socioemotional wealth This paper analyses the impact that family businesses have on the minimum rate of return required by owner-investors (ke) and on the equity returns (ROEaT) obtained in privately held businesses. This influence is analysed for an economic growth period (2002-2007) and for a crisis period (2008-2013) in the European context. Moreover, our study also explores the family nature through the heterogeneity among family firms in their required and obtained equity returns by considering the degree of family involvement in the ownership and management. Our findings reveal that while family businesses always have a negative and significant impact on ke regardless of the economic environment, they only have a positive and significant impact on ROEaT in economic upturns. Thus, non-economic goals do not necessarily imply underperformance but may involve a lower cost of equity capital in privately held family businesses than in privately held non-family businesses, which also leads to differences in the value creation. 2023-12-19T09:44:08Z 2023-12-19T09:44:08Z 2018 info:eu-repo/semantics/article Rojo-Ramírez, A. A., & Martínez-Romero, M. J. (2018). Required and obtained equity returns in privately held businesses: the impact of family nature—evidence before and after the global economic crisis. Review of Managerial Science, 12(3), 771–801. http://hdl.handle.net/10835/14848 10.1007/s11846-017-0230-7 en https://link.springer.com/article/10.1007/s11846-017-0230-7 Attribution-NonCommercial-NoDerivatives 4.0 Internacional http://creativecommons.org/licenses/by-nc-nd/4.0/ info:eu-repo/semantics/openAccess Springer |
| spellingShingle | Privately held businesses Family nature Minimum rate of return Return on equity Value creation Socioemotional wealth Rojo Ramírez, Alfonso Andrés Martínez Romero, María José Required and obtained equity returns in privately held businesses: the impact of family nature—evidence before and after the global economic crisis |
| title | Required and obtained equity returns in privately held businesses: the impact of family nature—evidence before and after the global economic crisis |
| title_full | Required and obtained equity returns in privately held businesses: the impact of family nature—evidence before and after the global economic crisis |
| title_fullStr | Required and obtained equity returns in privately held businesses: the impact of family nature—evidence before and after the global economic crisis |
| title_full_unstemmed | Required and obtained equity returns in privately held businesses: the impact of family nature—evidence before and after the global economic crisis |
| title_short | Required and obtained equity returns in privately held businesses: the impact of family nature—evidence before and after the global economic crisis |
| title_sort | required and obtained equity returns in privately held businesses: the impact of family nature—evidence before and after the global economic crisis |
| topic | Privately held businesses Family nature Minimum rate of return Return on equity Value creation Socioemotional wealth |
| url | http://hdl.handle.net/10835/14848 |
| work_keys_str_mv | AT rojoramirezalfonsoandres requiredandobtainedequityreturnsinprivatelyheldbusinessestheimpactoffamilynatureevidencebeforeandaftertheglobaleconomiccrisis AT martinezromeromariajose requiredandobtainedequityreturnsinprivatelyheldbusinessestheimpactoffamilynatureevidencebeforeandaftertheglobaleconomiccrisis |