Ownership concentration, control, and capital structure in family and non-family firms

Detalhes bibliográficos
Autor(a) principal: Pacheco, Luís Miguel
Data de Publicação: 2022
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/11328/4361
https://doi.org/10.53703/001c.36283
Resumo: The objective of this paper is to empirically examine the relationship between the firm’s ownership and control structure and its leverage. Capital structure is not only the result of various financial characteristics of the firm but also depends on who is in control. Thus, it is fundamental to understand the influence that certain features of the shareholding structure or the composition of the board, including the potential differences between family and non-family firms, exert on capital structure decisions. The paper uses a sample of wine firms in Portugal, because it helps to capture a business sector where family firms make up a significant portion of the industry. It is used an unbalanced panel data set of 460 firms for the period 2010 to 2018 and applied a random-effects model specification. Our results do not evidence significant differences between family and non-family firms. Still, they indicate that firms with fewer shareholders, smaller boards, and where the main director or member of the board is also a shareholder tend to present higher debt levels. There is no evidence of a non-monotonic relation between the ownership structure and debt, nor the presence of moderating effects on that relation. This paper fills a gap in the literature as the impact that specific characteristics of firms and their leaders have on capital structure decisions is still a topic less studied in the literature, particularly in bank-based economies.
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spelling Ownership concentration, control, and capital structure in family and non-family firmsCapital structureOwnership concentrationAgency theoryWine sectorFamily firmsThe objective of this paper is to empirically examine the relationship between the firm’s ownership and control structure and its leverage. Capital structure is not only the result of various financial characteristics of the firm but also depends on who is in control. Thus, it is fundamental to understand the influence that certain features of the shareholding structure or the composition of the board, including the potential differences between family and non-family firms, exert on capital structure decisions. The paper uses a sample of wine firms in Portugal, because it helps to capture a business sector where family firms make up a significant portion of the industry. It is used an unbalanced panel data set of 460 firms for the period 2010 to 2018 and applied a random-effects model specification. Our results do not evidence significant differences between family and non-family firms. Still, they indicate that firms with fewer shareholders, smaller boards, and where the main director or member of the board is also a shareholder tend to present higher debt levels. There is no evidence of a non-monotonic relation between the ownership structure and debt, nor the presence of moderating effects on that relation. This paper fills a gap in the literature as the impact that specific characteristics of firms and their leaders have on capital structure decisions is still a topic less studied in the literature, particularly in bank-based economies.2022-07-26T15:34:01Z2022-07-262022-06-20T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfPacheco, L. M. (2022). Ownership concentration, control, and capital structure in family and non-family firms. Journal of Small Business Strategy, 32(3), 113-127. https://doi.org/10.53703/001c.36283. Repositório Institucional UPT. http://hdl.handle.net/11328/4361http://hdl.handle.net/11328/4361Pacheco, L. M. (2022). Ownership concentration, control, and capital structure in family and non-family firms. Journal of Small Business Strategy, 32(3), 113-127. https://doi.org/10.53703/001c.36283. Repositório Institucional UPT. http://hdl.handle.net/11328/4361http://hdl.handle.net/11328/4361https://doi.org/10.53703/001c.36283eng2380-1751 (Electronic)https://jsbs.scholasticahq.com/article/36283-ownership-concentration-control-and-capital-structure-in-family-and-non-family-firmshttp://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessPacheco, Luís Miguelreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-16T02:07:49Zoai:repositorio.upt.pt:11328/4361Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:39:59.688011Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Ownership concentration, control, and capital structure in family and non-family firms
title Ownership concentration, control, and capital structure in family and non-family firms
spellingShingle Ownership concentration, control, and capital structure in family and non-family firms
Pacheco, Luís Miguel
Capital structure
Ownership concentration
Agency theory
Wine sector
Family firms
title_short Ownership concentration, control, and capital structure in family and non-family firms
title_full Ownership concentration, control, and capital structure in family and non-family firms
title_fullStr Ownership concentration, control, and capital structure in family and non-family firms
title_full_unstemmed Ownership concentration, control, and capital structure in family and non-family firms
title_sort Ownership concentration, control, and capital structure in family and non-family firms
author Pacheco, Luís Miguel
author_facet Pacheco, Luís Miguel
author_role author
dc.contributor.author.fl_str_mv Pacheco, Luís Miguel
dc.subject.por.fl_str_mv Capital structure
Ownership concentration
Agency theory
Wine sector
Family firms
topic Capital structure
Ownership concentration
Agency theory
Wine sector
Family firms
description The objective of this paper is to empirically examine the relationship between the firm’s ownership and control structure and its leverage. Capital structure is not only the result of various financial characteristics of the firm but also depends on who is in control. Thus, it is fundamental to understand the influence that certain features of the shareholding structure or the composition of the board, including the potential differences between family and non-family firms, exert on capital structure decisions. The paper uses a sample of wine firms in Portugal, because it helps to capture a business sector where family firms make up a significant portion of the industry. It is used an unbalanced panel data set of 460 firms for the period 2010 to 2018 and applied a random-effects model specification. Our results do not evidence significant differences between family and non-family firms. Still, they indicate that firms with fewer shareholders, smaller boards, and where the main director or member of the board is also a shareholder tend to present higher debt levels. There is no evidence of a non-monotonic relation between the ownership structure and debt, nor the presence of moderating effects on that relation. This paper fills a gap in the literature as the impact that specific characteristics of firms and their leaders have on capital structure decisions is still a topic less studied in the literature, particularly in bank-based economies.
publishDate 2022
dc.date.none.fl_str_mv 2022-07-26T15:34:01Z
2022-07-26
2022-06-20T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv Pacheco, L. M. (2022). Ownership concentration, control, and capital structure in family and non-family firms. Journal of Small Business Strategy, 32(3), 113-127. https://doi.org/10.53703/001c.36283. Repositório Institucional UPT. http://hdl.handle.net/11328/4361
http://hdl.handle.net/11328/4361
Pacheco, L. M. (2022). Ownership concentration, control, and capital structure in family and non-family firms. Journal of Small Business Strategy, 32(3), 113-127. https://doi.org/10.53703/001c.36283. Repositório Institucional UPT. http://hdl.handle.net/11328/4361
http://hdl.handle.net/11328/4361
https://doi.org/10.53703/001c.36283
identifier_str_mv Pacheco, L. M. (2022). Ownership concentration, control, and capital structure in family and non-family firms. Journal of Small Business Strategy, 32(3), 113-127. https://doi.org/10.53703/001c.36283. Repositório Institucional UPT. http://hdl.handle.net/11328/4361
url http://hdl.handle.net/11328/4361
https://doi.org/10.53703/001c.36283
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 2380-1751 (Electronic)
https://jsbs.scholasticahq.com/article/36283-ownership-concentration-control-and-capital-structure-in-family-and-non-family-firms
dc.rights.driver.fl_str_mv http://creativecommons.org/licenses/by/4.0/
info:eu-repo/semantics/openAccess
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