Why and how do family firms go public? A socioemotional wealth perspective of IPO

This study investigates why and how family firms go public via initial public offering (IPO) and explores how family firms’ distinctive traits contribute to specific IPO behaviour. The results show that family firms face IPO following three paths—shine, continue, and challenge. Family IPO firms emphasise control, identification, and succession (shine), focus on family social capital, responsibility towards stakeholders, and family business identity (continue), and highlight control, identification, new leaders’ self-affirmation, and generational transfers (challenge). We uncover the complexities of emotional endowment—a reference point for making IPO decisions and a resource or constraint to engage in the IPO process.