Abstract:In this study we examine the relation between firm's financial structure and family ownership. We develop a theoretical model of the precautionary cash holdings. Our empirical results show that the fraction of a company's shares that are held by the founding family members or their descendants influences the use of cash and equivalents, dividend policy and debt structure of a firm. Our results are robust to different estimation methods and alternative model specifications. We find that family firms tend to rely less on long-term debt financing, pay fewer dividends and carry higher precautionary cash balances.
In developing as in advanced economies, the pace of urbanization has continued to accelerate with the result that many less developed countries are experiencing problems in their urbanized areas which are quite similar to the advanced economies. In Iran, increased oil revenues which have aided in overall economic expansion have created differential growth rates in industries with different impacts on urban, as against rural growth, bringing along specific urban problems which require special consideration.In Tehran, as in the major growth centers of other developing countries, population was growing at an annual rate of 6.6 percent in the period 1966-1969. Since 1969, the natural rate of growth has somewhat decreased but still remains at the high plateau of 6.1 percent per annum. As a consequence of this rapid rise in the population, the number of inhabitants of Tehran reached a level of 3.9 million in 1972, according to Iranian Plan and Budget Organization estimates.
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