Value Is in the Eye of the Owner Affect Infusion and Socioemotional Wealth Among Family Firm Owners

Drawing on the affect infusion model from cognitive psychology, the authors develop a conceptual framework that explains how affect related to corporate ownership influences the formation of socioemotional wealth perceptions among family firm owners, reflected in altered subjective value perceptions for the ownership stake. The authors explore target, personal, and situational features in the subjective valuation process for the ownership stake and explain how these factors mediate the relationship between affect and socioemotional wealth perceptions. They further the understanding about the level of bias in family owners' subjective firm value assessments and offer new approaches for socioemotional wealth research.