Does family ownership always reduce default risk?

This paper analyses the effect of family ownership on the outcome of the firm’s risk‐taking activities, measured by the company’s default risk. We show that family ownership reduces the probability of default, which is proxied by the Black–Scholes–Merton (BSM) model. Our study goes further than the...

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Autores: Abinzano Guillén, María Isabel, Corredor Casado, María Pilar, Martínez García, Beatriz
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2021
País:España
Institución:Universidad Pública de Navarra
Repositorio:Academica-e. Repositorio Institucional de la Universidad Pública de Navarra
OAI Identifier:oai:academica-e.unavarra.es:2454/39412
Acceso en línea:https://hdl.handle.net/2454/39412
Access Level:acceso abierto
Palabra clave:Black–Scholes–Merton model
Default risk
Economic downturn
Family ownership
Institutional investors
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spelling Does family ownership always reduce default risk?Abinzano Guillén, María IsabelCorredor Casado, María PilarMartínez García, BeatrizBlack–Scholes–Merton modelDefault riskEconomic downturnFamily ownershipInstitutional investorsThis paper analyses the effect of family ownership on the outcome of the firm’s risk‐taking activities, measured by the company’s default risk. We show that family ownership reduces the probability of default, which is proxied by the Black–Scholes–Merton (BSM) model. Our study goes further than the initial approach by taking into account certain factors conditioning the aforementioned relationship. We find that the expected negative relationship between family ownership and default risk is modified when there is a significant participation of institutional investors, whose positive moderating influence intensifies if they are stable and long‐term oriented and/or during adverse financial circumstances.Spanish Ministry of Science and Innovation (PID2019‐104304GB‐I00/AEI/10.13039/501100011033), the Spanish Ministry of Economy and Competitiveness (ECO2016‐77631‐R) and the Ramón Areces Foundation.WileyAccounting and Finance Association of Australia and New ZealandEnpresen KudeaketaInstitute for Advanced Research in Business and Economics - INARBEGestión de Empresas2021info:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersionapplication/pdfhttps://hdl.handle.net/2454/39412reponame:Academica-e. Repositorio Institucional de la Universidad Pública de Navarrainstname:Universidad Pública de NavarraInglésinfo:eu-repo/grantAgreement/ES/1PE/ECO2016-77631-R© 2020 Accounting and Finance Association of Australia and New Zealandinfo:eu-repo/semantics/openAccessoai:academica-e.unavarra.es:2454/394122026-06-17T12:41:47Z
dc.title.none.fl_str_mv Does family ownership always reduce default risk?
title Does family ownership always reduce default risk?
spellingShingle Does family ownership always reduce default risk?
Abinzano Guillén, María Isabel
Black–Scholes–Merton model
Default risk
Economic downturn
Family ownership
Institutional investors
title_short Does family ownership always reduce default risk?
title_full Does family ownership always reduce default risk?
title_fullStr Does family ownership always reduce default risk?
title_full_unstemmed Does family ownership always reduce default risk?
title_sort Does family ownership always reduce default risk?
dc.creator.none.fl_str_mv Abinzano Guillén, María Isabel
Corredor Casado, María Pilar
Martínez García, Beatriz
author Abinzano Guillén, María Isabel
author_facet Abinzano Guillén, María Isabel
Corredor Casado, María Pilar
Martínez García, Beatriz
author_role author
author2 Corredor Casado, María Pilar
Martínez García, Beatriz
author2_role author
author
dc.contributor.none.fl_str_mv Enpresen Kudeaketa
Institute for Advanced Research in Business and Economics - INARBE
Gestión de Empresas
dc.subject.none.fl_str_mv Black–Scholes–Merton model
Default risk
Economic downturn
Family ownership
Institutional investors
topic Black–Scholes–Merton model
Default risk
Economic downturn
Family ownership
Institutional investors
description This paper analyses the effect of family ownership on the outcome of the firm’s risk‐taking activities, measured by the company’s default risk. We show that family ownership reduces the probability of default, which is proxied by the Black–Scholes–Merton (BSM) model. Our study goes further than the initial approach by taking into account certain factors conditioning the aforementioned relationship. We find that the expected negative relationship between family ownership and default risk is modified when there is a significant participation of institutional investors, whose positive moderating influence intensifies if they are stable and long‐term oriented and/or during adverse financial circumstances.
publishDate 2021
dc.date.none.fl_str_mv 2021
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
format article
status_str acceptedVersion
dc.identifier.none.fl_str_mv https://hdl.handle.net/2454/39412
url https://hdl.handle.net/2454/39412
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv info:eu-repo/grantAgreement/ES/1PE/ECO2016-77631-R
dc.rights.none.fl_str_mv © 2020 Accounting and Finance Association of Australia and New Zealand
info:eu-repo/semantics/openAccess
rights_invalid_str_mv © 2020 Accounting and Finance Association of Australia and New Zealand
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Wiley
Accounting and Finance Association of Australia and New Zealand
publisher.none.fl_str_mv Wiley
Accounting and Finance Association of Australia and New Zealand
dc.source.none.fl_str_mv reponame:Academica-e. Repositorio Institucional de la Universidad Pública de Navarra
instname:Universidad Pública de Navarra
instname_str Universidad Pública de Navarra
reponame_str Academica-e. Repositorio Institucional de la Universidad Pública de Navarra
collection Academica-e. Repositorio Institucional de la Universidad Pública de Navarra
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,811543

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