Finance in Family Business
Abstract:This article is an exploratory investigation of the financial issues of family business, such as capital structure, behavior towards investments and risk, and dividend policy. We also analyze the relation between these dimensions and performance. The most important findings of this research are that family businesses have low debt/equity levels, especially those family businesses that have an important market-share positions in their industry. The family businesses that have leading market-share positions have lesser financial performance than the family businesses who are followers in market share.
Document Type: Research Article
Affiliations: 1: Full Professor of General Management and Holder of the Family Business Chair IESE, The University of Navarra. 2: Doctoral candidate in Management, IESE, The University of Navarra, and Assistant Professor of General Management, IEEM, University of Montevideo.
Publication date: December 1, 1996