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The influence of family ownership dispersion on debt level in privately held firms

Author

Listed:
  • Silvia Bacci

    () (University of Perugia)

  • Alessandro Cirillo

    () (University of Foggia)

  • Donata Mussolino

    () (University of Naples Federico II)

  • Simone Terzani

    () (University of Perugia)

Abstract

The aim of this article is to investigate the financing behavior of privately held firms along the dispersion of family ownership. Drawing on the socio-emotional wealth perspective, we argue that debt levels are contingent on the degree of ownership dispersion among family members. Based on a sample of 2451 observations, in a 10-year time frame, our results reveal the existence of an inverted U-shaped relationship between debt level and intra-family ownership dispersion. We demonstrate that this relationship is moderated by the generational involvement that inverts it in later generations.

Suggested Citation

  • Silvia Bacci & Alessandro Cirillo & Donata Mussolino & Simone Terzani, 2018. "The influence of family ownership dispersion on debt level in privately held firms," Small Business Economics, Springer, vol. 51(3), pages 557-576, October.
  • Handle: RePEc:kap:sbusec:v:51:y:2018:i:3:d:10.1007_s11187-017-9930-2
    DOI: 10.1007/s11187-017-9930-2
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Family ownership dispersion; Debt level; Intergenerational stage; Socio-emotional wealth; Capital structure; Panel data;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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