Public family firms and capital structure: A meta‐analysis

Hansen, Christopher; Block, Joern

doi:10.1111/corg.12354

Cited by 26 publications

(26 citation statements)

References 146 publications

(190 reference statements)

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“…Similarly, Michiels & Molly (2017) suggested that a behavioral agency approach should be adopted to better understand family firms' capital structure. According to the behavioral agency approach, under-aspiration performance is a major source of differences in behavior of firms, which should be considered when investigating family firms' capital structure (Hansen & Block, 2021).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…Over the past 20 years, capital structure and family ownership have been emerged as one of the most popular research issues in finance and management (Hansen & Block, 2021). Currently, research on these issues not only contributes to the finance literature, but also provides many meaningful managerial implications, since family is the dominant corporate type all over the world, and the capital structure is one of the most meaningful issues in corporate finance (Gottardo & Moisello, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…So, family firms may have different financial leverage compared to non-family firms due to Investment Management and Financial Innovations, Volume 18, Issue 3, 2021 http://dx.doi.org/10.21511/imfi.18 (3).2021. 17 the overall benefit surplus, but it is not clear that family firms have more or less debts (Ramalho & Rita, 2018). As a result, recent empirical evidence on the effect of family ownership on a firm's capital structure is inconclusive.…”

Section: Introductionmentioning

confidence: 99%

“…Some research show that the relationship is positive (Baek et al, 2016;Gottardo & Moisello, 2019;Ramalho & Rita, 2018), while others find a negative relationship (Ampenberger et al, 2013;Santos et al, 2014). Therefore, the investigation of family ownership's impact on capital structure calls for further research, based on behavioral agency approach to detect the nonfinancial aspects of family firms that moderate this impact (Hansen & Block, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…Empirical evidence showed that under-aspiration performance moderated the impact of family ownership on business exit, research and development, and risk-taking behaviors (Chirico et al, 2020;Chrisman & Patel, 2012;Gomez-Mejia et al, 2019). In a meta-analysis of family firm's capital structure, Hansen and Block (2021) suggested that the investigation of the moderating impact of under-aspiration performance on the relationship between family ownership and capital structure would be a contribution to the literature. Therefore, the purpose of this study is to investigate the impact of under-aspiration performance and family ownership together on capital structure.…”

Section: Introductionmentioning

confidence: 99%

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The impact of family ownership and under-aspiration performance on a firm’s capital structure

Nguyen

2021

Investment Management and Financial Innovations

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Research on the capital structure of family firms has flourished in recent years, but the impact of performance aspiration and family ownership together on capital structure remains inadequately investigated. Therefore, the purpose of this study is to explore the impact of family ownership and under-aspiration performance and their interaction on capital structure. Panel data estimations were applied with a unique dataset of 3.857 observations from 387 public firms in Vietnam from 2010 to 2020 (134 family firms and 253 non-family firms). The results reveal that family ownership and under-aspiration performance each has a positive effect on capital structure. However, under-aspiration performance negatively moderates the positive effect of family ownership on capital structure. These findings contribute to a stream of studies on the capital structure of family firms by exploring the role of under-aspiration performance, as well as provide important implications for shareholders, managers and debtors in financial management.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The impact of family ownership and under-aspiration performance on a firm’s capital structure

Nguyen

2021

Investment Management and Financial Innovations

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Corporate diversification and debt financing: Do family shareholders protect their control rights?

Subramaniam

Hosen

2022

Manage Decis Econ

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The study explored the relationship between corporate diversification and the debt choice of listed 712 Malaysian family firms for the period from 2016 to 2020. Tobit regression results revealed that industrial diversified firms preferred debt financing, while geographically diversified firms rejected debt. With family control, firms that conducted both types of diversification activities rejected debt financing. Further, for the case of maturity structure of debt, family firms engaged in diversification activities tend to borrow short-term debt, thereby reducing their ownership's risk of dilution and boosting their short-term market goals by improving the creditors' shortterm monitoring function. Policy implications are discussed.

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Understanding the dynamics of capital structure, corporate governance, and corporate social responsibility in high- and low-leveraged US and Chinese firms

Mahmood

Arslan

Younas

et al. 2023

Environ Sci Pollut Res

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Corporate social responsibility turned into a global sensation from the inception of the twenty-first century in the corporate world and grabbed immense engrossment from all stakeholders in their decision-making process. Capital structure and corporate governance practices are the well-mellowed facets of corporate finance literature. In this study, the moderating role of corporate social responsibility (CSR) between corporate governance and leverage of the US and Chinese listed firms has been established, with a further extension of analyzing the moderating role of CSR between corporate governance and leverage in high vs low leveraged firms and high CSR vs low CSR firms as the novelty of this study and has never been examined in both economies and globally. The data of 1989 Chinese-listed firms from 28 sectors of the economy and 6640 US-listed firms from 27 sectors of the economy has been taken from 2001 to 2019 and analyzed through fixed effect regression and system generalized method of moment (GMM). Results of the study reveal that CSR and corporate governance are negatively associated with the leverage of both Chinese and US firms. Moreover, the moderating role of CSR has established between corporate governance and leverage negative relationship. The moderating role of CSR in the relationship of leverage and corporate governance is established only in low-leveraged firms whereas it is insignificant in high-leveraged firms. System GMM confirms the signs and significance of the regression results; that is why regression results are robust and reliable, and there is no endogeneity problem in our model. The study also gives an insight for future research on high- and low-leveraged firms and firms with more CSR score than less CSR score with other dimensions such as firm performance and firm value variables.

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Public family firms and capital structure: A meta‐analysis

Cited by 26 publications

References 146 publications

The impact of family ownership and under-aspiration performance on a firm’s capital structure

The impact of family ownership and under-aspiration performance on a firm’s capital structure

Corporate diversification and debt financing: Do family shareholders protect their control rights?

Understanding the dynamics of capital structure, corporate governance, and corporate social responsibility in high- and low-leveraged US and Chinese firms

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