Understanding family firm intentions to use private equity: A theory of planned behaviour perspective

Authors

Chris Graves
Pi-Shen Seet, Edith Cowan UniversityFollow
Anneleen Michiels

Document Type

Journal Article

Publication Title

Entrepreneurship Research Journal

Publisher

Walter de Gruyter

School

School of Business and Law

RAS ID

53004

Comments

The final publication is available at www.degruyter.com. https://doi.org/10.1515/erj-2022-0019

Graves, C., Seet, P. S., & Michiels, A. (2022). Understanding family firm intentions to use private equity: A theory of planned behaviour perspective. Entrepreneurship Research Journal. Advance online publication. https://doi.org/10.1515/erj-2022-0019

Abstract

Although past research suggests that family firms are less likely to use private equity (PE) financing, further research is required to identify the underlying reasons for such behaviour. Using the theory of planned behaviour and based on the analysis of data collected from 254 family firms, we identify the factors that explain a family firm's intentions to use PE. Family owners are more likely to plan to use PE when they have a favourable attitude toward PE, their intended succession strategy involves relinquishing control by selling the business sometime in the future, and they have a good understanding of PE.

DOI

10.1515/erj-2022-0019