IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-319-14209-8_12.html
   My bibliography  Save this book chapter

Ownership Structure, Cash Constraints and Investment Behaviour in Russian Family Firms

In: Family Businesses in Transition Economies

Author

Listed:
  • Tullio Buccellato

    (Ernst and Young)

  • Gian Fazio

    (School of Slavonic and East European Studies, University College)

  • Yulia Rodionova

    (Leicester Business School, De Montfort University)

  • Natalia Vershinina

    (Leicester Business School, De Montfort University)

Abstract

In this chapter, using a large representative panel dataset of 8,637 large firms in the European part of Russia and their balance sheet information over the period 2000–2004, we investigate the extent to which Russian firms and in particular a smaller sample of family firms are liquidity constrained in their investment behaviour and how ownership structure changes the relationship between internal funds and the investment decisions of these firms. Family firms differ from nonfamily firms due to the unique influence of family members in ownership, strategic control and succession and play a critical role in most economies throughout the world. We estimate a structural financial accelerator model of investment and first test the hypothesis that Russian firms overall and family firms in particular are cash constrained by conducting random-effects estimation. Our results confirm that firms are liquidity constrained when the ownership structure is not included in the econometric specifications. With regards to the ownership structure and the degree of ownership concentration, we find that companies owned by private individuals and families are less cash constrained, which is in agreement with previous literature. We also find that state-owned companies are less cash constrained, independently of whether their ownership structure is concentrated. No significant impact is found for banks and institutions.

Suggested Citation

  • Tullio Buccellato & Gian Fazio & Yulia Rodionova & Natalia Vershinina, 2015. "Ownership Structure, Cash Constraints and Investment Behaviour in Russian Family Firms," Springer Books, in: Léo-Paul Dana & Veland Ramadani (ed.), Family Businesses in Transition Economies, edition 127, pages 239-264, Springer.
  • Handle: RePEc:spr:sprchp:978-3-319-14209-8_12
    DOI: 10.1007/978-3-319-14209-8_12
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-319-14209-8_12. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.