Reassessing debt-financing decisions in family firms: Family involvement on the board of directors and generational stage

This paper reexamines the factors influencing debt-financing decisions in family firms, considering the importance of socioemotional wealth and heterogeneity issues. In particular, we explore the board of directors and the generational stage as key explicative factors of heterogeneity in family busi...

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Detalles Bibliográficos
Autores: Comino-Jurado, María, Sánchez-Andújar, Sonia, Parrado-Martínez, Purificación
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2021
País:España
Institución:Universidad de Jaén
Repositorio:RUJA. Repositorio Institucional de la Producción Científica de la Universidad de Jaén
OAI Identifier:oai:dnet:ruja________::2dcec2307eb6f75c6537d117fda90bf2
Acceso en línea:https://doi.org/10.1016/j.jbusres.2021.06.060
https://hdl.handle.net/10953/7794
Access Level:acceso abierto
Palabra clave:Indebtedness
Board of directors
Generational stage
Family involvement
Socioemotional wealth
Partial least squares
658.14/.17
334.722.24(460)
Descripción
Sumario:This paper reexamines the factors influencing debt-financing decisions in family firms, considering the importance of socioemotional wealth and heterogeneity issues. In particular, we explore the board of directors and the generational stage as key explicative factors of heterogeneity in family businesses. Focused on a large sample of Spanish family firms, we estimate a partial least squares model, whose results show that the higher the level of family involvement in the board of directors and the lower the generational stage, the higher the debt level of the family firm. Consequently, in addition to traditional determinants of the level of debt, the above variables should be considered to better understand the heterogeneous debt-financing decisions of family firms, and this has practical implications for them and their internal and external relationships.