Determinants of capital structure: Family businesses versus non-family firms

  1. Acedo-Ramírez, M.A. 2
  2. Ayala-Calvo, J.C. 2
  3. Navarrete-Martínez, E. 1
  1. 1 Caja Rural de Navarra, Spain
  2. 2 Universidad de La Rioja
    info

    Universidad de La Rioja

    Logroño, España

    ROR https://ror.org/0553yr311

Revista:
Finance a Uver

ISSN: 0015-1920

Any de publicació: 2017

Volum: 67

Número: 2

Pàgines: 80-103

Tipus: Article

SCOPUS: 2-s2.0-85018328739 WoS: WOS:000400932500001 GOOGLE SCHOLAR

Altres publicacions en: Finance a Uver

Resum

The study applies a GMM technique to a panel data sample of 2,093 private Spanish companies, 1,434 of which are family firms to investigate whether or not the capital structure of family business differs from that of non-family firms. The results show that family firms are more indebted than non-family firms. Moreover, the factors that have an influence on capital structure have different impacts on family firms and non-family firms. Furthermore, our findings also reveal that the financial structure (leverage ratio) of family firms changes with the size of the business and the firm’s life cycle, and that the variables that explain the financial behaviour of the family firms have different levels of importance, depending on the size of the business and the firm’s life cycle. © 2017, Faculty of Social Sciences. All rights reserved.