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Capital structure determinants in the context of listed family firms

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Detalhes bibliográficos
Resumo:This paper provides an analysis of the capital structure in the context of Portuguese listed family firms, covering the period from 1999 to 2010. Using a panel data approach, we find that family controlled firms differ from non-family firms in several aspects. Family firms use more debt than non-family firms and have a lower proportion of independent directors. In addition, they finance new projects with debt financing and are sensitive to the cost of debt and the crisis periods, whereas non-family firms with higher levels of cash have more debt financing. Overall, we find a negative relationship between profitability and non-debt tax shield and debt and a positive relationship between firms’ age and debt.
Autores principais:Vieira, Elisabete Simões
Assunto:Capital Structure Family Firms Panel Data
Ano:2014
País:Portugal
Tipo de documento:artigo
Tipo de acesso:acesso restrito
Instituição associada:Universidade de Aveiro
Idioma:inglês
Origem:RIA - Repositório Institucional da Universidade de Aveiro
Descrição
Resumo:This paper provides an analysis of the capital structure in the context of Portuguese listed family firms, covering the period from 1999 to 2010. Using a panel data approach, we find that family controlled firms differ from non-family firms in several aspects. Family firms use more debt than non-family firms and have a lower proportion of independent directors. In addition, they finance new projects with debt financing and are sensitive to the cost of debt and the crisis periods, whereas non-family firms with higher levels of cash have more debt financing. Overall, we find a negative relationship between profitability and non-debt tax shield and debt and a positive relationship between firms’ age and debt.