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Understanding the Continuation of Firm Activities when Entrepreneurs Exit their Firms: Using Theory of Planned Behavior

Authors

  • Hannes Leroy,

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    • Address correspondence to: Hannes Leroy, Katholieke Universiteit Leuven, 3000 Leuven, Belgium. E-mail: hannes.leroy@kuleuven.be

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    • Hannes Leroy is Visiting Assistant Professor at Cornelly University and University of Leuven.
  • Sophie Manigart,

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    • Sophie Manigart is Partner at the Accounting and Finance Department, Vlerick Business School, and full professor at the Accountancy and Corporate Finance Department, Ghent University.
  • Miguel Meuleman,

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    • Miguel Meuleman is Associate Professor at the Entrepreneurship, Governance and Strategy Department at Vlerick Business School and Adjoint Professor at Imperial College Business School at the Vlerick Business School.
  • Veroniek Collewaert

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    • Veroniek Collewaert is Assistant Professor at the Entrepreneurship, Governance and Strategy Department at Vlerick Business School; Maastricht University.

Abstract

Up to now, little attention has been paid to the continuity of a firm when entrepreneurs exit. Survey data from 175 entrepreneurs confirm the theory of planned behavior as an appropriate framework to understand whether entrepreneurs, when leaving, sell or liquidate their firm. Entrepreneurs' sale attitudes are related to sale intentions, which are associated with firm sale. Further, sale attitudes are positively related to whether entrepreneurs perceive firm continuation to be out of free will, their experience, the number of employees, and whether the firm is a multigeneration family business.

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