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RESEARCH PRODUCT

Leverage and Family Firms

Beatriz ForésSergio Camisón-habaMelanie Grueso-galaJose Antonio Clemente

subject

family firms050208 financeLeverage (finance)multi-theoretical approach0502 economics and business05 social sciencesScopus(2)Business050203 business & managementIndustrial organization

description

This chapter analyses the relationship between ownership structure and leverage, providing an integrated theoretical approach that combines traditional financial theories, agency theory, and recently developed theories relating to non-financial preferences. The results show that, after controlling for endogeneity, being a family firm has a positive effect on the propensity to incur debt. These findings add to the existing body of literature and underline the need for a multi-theoretical approach when explaining the capital structure of family firms. The authors apply panel data methodology to control for individual heterogeneity of family firms. The chapter uses a sample of Spanish firms operating in the tourism industry.

yearjournalcountryeditionlanguage
2020-01-01
https://doi.org/10.4018/978-1-7998-1655-3.ch008