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Exploring the Financial Dimensions of Lebanese SMEs: Comparative Study between Family and Non-family Business

Author

Listed:
  • Hani El-Chaarani

    (Faculty of Business Administration, Beirut Arab University, Lebanon)

  • Zouhour El-Abiad

    (Faculty of Economic Sciences and Business Administration, Lebanese University, Lebanon.)

Abstract

This study investigates the financial dimensions of family and non-family SMEs in Lebanon from 2005 to 2016. Based on 81 family SMEs and 45 non-family SMEs, the results reveal that family SMEs have outperform the non-family SMEs during economical and political instability period. In addition, the results show that family SMEs rely on long term debts more than non-family SMEs. Oppositely to non-family SMEs, when the level of risk increased with local and regional instability in the period between 2005 and 2011, the results reveal that family SMEs enhanced their needs of financial resources by developing their long term debts and lowering their short term debts. Finally, the results show that family SMEs have more capacity than non-family SMEs to preserve their performance and increase their effort by selecting an overinvesting strategy during instability periods.

Suggested Citation

  • Hani El-Chaarani & Zouhour El-Abiad, 2019. "Exploring the Financial Dimensions of Lebanese SMEs: Comparative Study between Family and Non-family Business," International Review of Management and Marketing, Econjournals, vol. 9(3), pages 19-30.
    • Handle: RePEc:eco:journ3:2019-03-3
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    References listed on IDEAS

    as
    1. Bruno Amann & Jacques Jaussaud, 2012. "Family and non-family business resilience in an economic downturn," Asia Pacific Business Review, Taylor & Francis Journals, vol. 18(2), pages 203-223, April.
    2. Bruno Amann & Jacques Jaussaud, 2012. "Family and Non-Family Business Resilience in an Economic Downturn," Post-Print hal-02431086, HAL.
    3. Abdellatif, Mahamat & Amann, Bruno & Jaussaud, Jacques, 2010. "Family versus nonfamily business: A comparison of international strategies," Journal of Family Business Strategy, Elsevier, vol. 1(2), pages 108-116, June.
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    Cited by:

    1. Aziza Naz & Monika Nadova Kroslakova & Iqra Farheen & Marian Cvirik & Anna Michalkova, 2023. "Nexus between corporate governance and earnings management in family and non-family firms," E&M Economics and Management, Technical University of Liberec, Faculty of Economics, vol. 26(2), pages 42-57, June.

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    More about this item

    Keywords

    Family firms; SMEs; Financial strategy; Capital structure; Investment;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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