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The financial structure of family businesses:
[La structure financière des entreprises familiales : une analyse fondée sur la théorie du Pecking Order]

Author

Listed:
  • Faten Chibani
  • Jamel Henchiri

    (RED-ISGG - Recherche, Entreprises et décision - ISGGB - Institut Supérieur de Gestion de Gabès (Université de Gabès))

Abstract

This paper aims to analyze whether pecking order theory has a relevant application for family businesses. For this purpose, we compared two series of family and non-family unlisted firms in the French context. Our results indicate that generally the financial behavior of family businesses differs from non-family enterprises. Family business prefer internal financing to external financing and, in the case of external financing, debt is preferred to the capital increase. The Pecking order theory is more appropriate for family businesses than for non-family businesses.

Suggested Citation

  • Faten Chibani & Jamel Henchiri, 2016. "The financial structure of family businesses: [La structure financière des entreprises familiales : une analyse fondée sur la théorie du Pecking Order]," Post-Print hal-01739419, HAL.
    • Handle: RePEc:hal:journl:hal-01739419
    Note: View the original document on HAL open archive server: https://hal.science/hal-01739419
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    References listed on IDEAS

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