Finance in family firms: Generation does matter

International Journal of Entrepreneurship and Small Business

Volumn 11, Issue 3, 2010, Pages 338-352

  Blanco Mazagatos, Virginia ^a   De La Fuente Sabaté, Juan Manuel ^a   De Quevedo Puente, Esther ^a  

^a Facultad de CCEE y Empresariales   (Spain)

Author keywords

family firm; financing; generational stage

Indexed keywords

EID: 77957767677     PISSN: 14761297     EISSN: 17418054     Source Type: Journal    
DOI: 10.1504/IJESB.2010.035822     Document Type: Article

References (64)

1. Agrawal, A. and Nagarajan, N.J. (1990) 'Corporate capital structure, agency costs, and ownership control: the case of all-equity firms', Journal of Finance, Vol. 45, No. 4, pp.1325-1331.
2. Anderson, R.C. and Reeb, D.M. (2003a) 'Founding-family ownership, corporate diversification, and firm leverage', Journal of Law and Economics, Vol. 46, No. 2, pp.653-680.
3. Anderson, R.C. and Reeb, D.M. (2003b) 'Founding family ownership and firm performance: evidence from the S&P 500', Journal of Finance, Vol. 58, No. 3, pp.1301-1328.
4. Anderson, R.C., Mansi, S.A., and Reeb, D.M. (2003) 'Founding family ownership and the agency cost of debt', Journal of Financial Economics, Vol. 68, No. 2, pp.263-285.
5. Aronoff, C.E. and Ward, J.L. (1995) 'Family-owned businesses: a thing of the past or a model for the future?', Family Business Review, Vol. 8, No. 2, pp.121-130.
6. Barton, S.L. and Gordon, P.J. (1987) 'Corporate strategy: useful perspective for the study of capital structure?', Academy of Management Review, Vol. 12, No. 1, pp.67-75.
7. Barton, S.L. and Matthews, C.H. (1989) 'Small firm financing: implications from a strategic management perspective', Journal of Small Business Management, Vol. 27, No. 1, pp.1-7.
8. Cabrera-Suárez, K. and Santana-Martín, D.J. (2004) 'Governance in Spanish family business', International Journal of Entrepreneurial Behaviour & Research, Vol. 10, No. 2, pp.141-163.
9. Carney, M. (2005) 'Corporate governance and competitive advantage in family-controlled firms', Entrepreneurship Theory and Practice, Vol. 29, No. 3, pp.249-265.
10. Chaganti, R. and Damanpour, F. (1991) 'Institutional ownership, capital structure and firm performance', Strategic Management Journal, Vol. 12, No. 7, pp.479-491.
11. Churchill, N. and Hatten, K. (1987) 'Non-market based transfers of wealth and power: a research framework for family business', American Journal of Small Business Management, Vol. 11, No. 3, pp.51-64.
12. Coleman, S. and Carsky, M. (1999) 'Sources of capital for small family-owned businesses: evidence from the national survey of small business finances', Family Business Review, Vol. 12, No. 1, pp.73-85.
13. Corbetta, G. (1995) 'Patterns of development of family businesses in Italy', Family Business Review, Vol. 8, No. 4, pp.255-265.
14. Dalton, D.R. and Daily, C.M. (1992) 'Financial performance of founder-managed versus professionally managed corporations', Journal of Small Business Economics, Vol. 30, No. 2, pp.25-34.
15. De Jong, A. and Veld, C. (2001) 'An empirical analysis of incremental capital structure decisions under managerial entrenchment', Journal of Banking and Finance, Vol. 25, No. 10, pp.1857-1895.
16. Demaris, A. (1992) Logit Modeling: Practical Applications, Sage Publications, Newbury Park, CA.
17. Demsetz, H. and Lehn, K. (1985) 'The structure of corporate ownership: causes and consequences', Journal of Political Economy, Vol. 93, No. 6, pp.1155-1177.
18. Donaldson, G. (1961) Corporate Debt Capacity: A Study of Corporate Debt Policy and the Determination of Corporate Debt Capacity, Harvard Business School Division of Research, Boston, MA.
19. Fernández, Z. and Nieto, M.J. (2005) 'La estrategia de internacionalización de la pequeña empresa familiar', Cuadernos de Economía y Dirección de la Empresa, Vol. 22, No. 1, pp.107-125.
20. Gallo, M.A., Tàpies, J. and Cappuyns, K. (2004) 'Comparison of family and non-family business: financial logic and personal preferences', Family Business Review, Vol. 17, No. 4, pp.303-318.
21. Galve, C. and Salas, V. (2003) La Empresa Familiar en España. Fundamentos Económicos y Resultados, Fundación BBVA, Bilbao.
22. Galve, C. and Salas, V. (2005) 'Family ownership and performance: the net effect of productive efficiency and growth constraints', Working Paper No. 66, European Corporate Governance Institute-Finance, Belgium.
23. Gersick, K.E., Davis, J.A., McCollom, M. and Lansberg, I. (1997) Generation to Generation: Life Cycles of the Family Business, Harvard Business School Press, Boston, MA.
24. Grier, P. and Zychowicz, E. (1994) 'Institutional investors, corporate discipline and the role of debt', Journal of Economics and Business, Vol. 46, No. 1, pp.1-11.
25. Habbershon, T.G. and Williams, M.L. (1999) 'A resource-based framework for assessing the strategic advantages of family firms', Family Business Review, Vol. 12, No. 1, pp.1-25.
26. Hair, J.F., Anderson, R.E., Tatham, R.L. and Black, W.C. (1995) Multivariate Data Analysis: With Readings, Prentice Hall, Englewood Cliffs, NJ.
27. Hamilton, R.T. and Fox, M.A. (1998) 'The financing preferences of small firm owners', International Journal of Entrepreneurial Behaviour & Research, Vol. 4, No. 3, pp.239-248.
28. Harris, M. and Raviv, A. (1990) 'Capital structure and the informational role of debt', Journal of Finance, Vol. 45, No. 2, pp.321-349.
29. Holtz-Eakin, D., Joulfaian, D. and Rosen, H.S. (1993) 'The Carnegie conjecture: some empirical evidence', The Quarterly Journal of Economics, Vol. 108, No. 2, pp.413-435.
30. Hoskisson, R.E., Hitt, M. A. and Ireland, R.D. (2004) Competing for Advantage, South-Western College Publishing, Cincinnati, OH.
31. Jensen, M.C. (1986) 'Agency costs of free cash flow, corporate finance, and takeovers', American Economic Review, Vol. 76, No. 2, pp.323-329.
32. Jensen, M.C. and Meckling, W. (1976) 'Theory of the firm: managerial behaviour, agency cost and ownership structure', Journal of Financial Economics, Vol. 3, No. 2, pp.4-19.
33. Karra, N., Tracey, P. and Phillips, N. (2006) 'Altruism and agency in the family firm: exploring the role of family, kinship and ethnicity', Entrepreneurship Theory and Practice, Vol. 30, No. 6, pp.861-877.
34. Kleiman, R., Lange, J., Leleux, B., Petty, W. and Shulman, J. (1996) An Index of Family Controlled Publicly Traded Companies, Frontiers of Entrepreneurial Research, Badson College, Boston, MA.
35. Klein, S.B. (2007) 'Family influence on value creation: a resource-based analysis of the value creation process in family firms', Int. J. Entrepreneurship and Small Business, Vol. 4, No. 2, pp.110-121.
36. La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny, R.W. (1998) 'Law and finance', Journal of Political Economy, Vol. 106, No. 6, pp.1113-1155.
37. Litz, R.A. (1995) 'The family business: toward definitional clarity', Family Business Review, Vol. 8, No. 2, pp.71-82.
38. Lopez-Gracia, J. and Aybar-Arias, C. (2000) 'An empirical approach to the financial behaviour of small and medium sized companies', Small Business Economics, Vol. 14, No. 1, pp.55-63.
39. Lubatkin, M., Schulze, W., Ling, Y. and Dino, R. (2005) 'The effects of parental altruism on the governance of family-managed firms', Journal of Organizational Behavior, Vol. 26, No. 3, pp.313-330.
40. Lyagoubi, M. (2006) 'Family firms and financial behavior: how family shareholder preferences influence firms financing', in P.Z. Poutziouris, K.X. Smyrnios and S.B. Klein (Eds.): Handbook of Research on Family Business, pp.537-551, Edward Elgar, Cheltenham.
41. Mahérault, L. (2000) 'The influence of going public on investment policy: an empirical study of French family-owned businesses', Family Business Review, Vol. 13, No. 1, pp.71-79.
42. Matthews, C.H., Vasudevan, D.P., Barton, S.L. and Apana, R. (1994) 'Capital structure decision making in privately held firms: beyond the finance paradigm', Family Business Review, Vol. 7, No. 4, pp.349-367.
43. McConaughy, D., Matthews, C.H. and Fialko, A. (2001) 'Founding family controlled firms: performance, risk and value', Journal of Small Business Management, Vol. 39, No. 1, pp.31-49.
44. McMahon, R.G.P. and Stanger, A.M.J. (1995) 'Understanding the small enterprise financial objective function', Entrepreneurship Theory and Practice, Vol. 19, No. 4, pp.21-39.
45. Miller, D. and Le Breton-Miller, I. (2005) Managing for the Long Run: Lessons in Competitive Advantage from Great Family Businesses, Harvard Business School Press, Boston, MA.
46. Mishra, C.S. and McConaughy, D.L. (1999) 'Founding family control and capital structure: the risk of loss of control and the aversion to debt', Entrepreneurship Theory and Practice, Vol. 23, No. 4, pp.53-64.
47. Myers, S. C. and Majluf, N.S. (1984) 'Corporate financing and investment decisions when firms have information that investors do not have', Journal of Financial Economics, Vol. 13, No. 2, pp.187-221.
48. Myers, S.C. (1984) 'The capital structure puzzle', Journal of Finance, Vol. 39, No. 3, pp.575-592.
49. Neubauer, F. and Lank, A.G. (1998) The Family Business-its Governance for Sustainability, Macmillan Press, Londres.
50. Norton, E. (1991) 'Factors affecting capital structure decisions', The Financial Review, Vol. 26, No. 3, pp.431-446.
51. Pedersen, T. and Thomsen, S. (2003) 'Ownership structure and value of the largest European firms: the importance of owner identity', Journal of Management and Governance, Vol. 7, No. 1, pp.27-55.
52. Pérez-González, F. (2006) 'Inherited control and firm performance', American Economic Review, Vol. 96, No. 5, pp.1559-1588.
53. Poutziouris, P. (2001) 'The views of family companies on venture capital: empirical evidence from the UK small to medium-size enterprising economy', Family Business Review, Vol. 14, No. 3, pp.277-291.
54. Romano, C.A., Tanewski, G.A. and Smyrnios, K.X. (2000) 'Capital structure decision making: a model for family business', Journal of Business Venturing, Vol. 16, No. 3, pp.285-310.
55. Schulze, W., Lubatkin, M. and Dino, R. (2002) 'Altruism, agency, and the competitiveness of family firms', Managerial and Decision Economics, Vol. 23, Nos. 4/5, pp.247-259.
56. Schulze, W., Lubatkin, M. and Dino, R. (2003) 'Exploring the agency consequences of ownership dispersion among the directors of private family firms', Academy of Management Journal, Vol. 46, No. 2, pp.179-195.
57. Scott, W.R. (1981) Organizations: Rational, Natural, and Open Systems, Prentice Hall, Englewood Cliffs, NJ.
58. Shleifer, A. and Visnhy, R.W. (1997) 'A survey of corporate governance', The Journal of Finance, Vol. 52, No. 2, pp.737-783.
59. Shyam-Sunder, L., and Myers, S.C. (1999) 'Testing static tradeoff against pecking order models of capital structure', Journal of Financial Economics, Vol. 51, No. 2, pp.219-244.
60. Sirmon, D.G. and Hitt, M.A. (2003) 'Managing resources: linking unique resources, management, and wealth creation in family firms', Entrepreneurship Theory and Practice, Vol. 27, No. 4, pp.339-358.
61. Smith, B.F. and Amoako-Adu, B. (1999) 'Management succession and financial performance of family controlled firms', Journal of Corporate Finance, Vol. 5, pp.341-368.
62. Villalonga, B. and Amit, R. (2006) 'How do family ownership, control and management affect firm value?', Journal of Financial Economics, Vol. 80, No. 2, pp.385-417.
63. Ward, J.L. (1987) Keeping the Family Business Healthy: How to Plan for Continuing Growth, Profitability, and Family Leadership, Jossey-Bass, San Francisco, CA.
64. Westhead, P. and M. Cowling (1998) 'Family firm research: the need for a methodological rethink', Entrepreneurship Theory and Practice, Vol. 23, No. 1, pp.31-56.