Template-Type: ReDIF-Article 1.0
Author-Name: Elena Smirnova
Author-Name: Sirousse Tabriztchi
Author-Name: Cary Lange
Title:  Cash Holdings, Use of Debt and Dividend Structure of Family Firms
Abstract:  In this study we examine the relation between firm’s financial structure and family ownership. We develop a theoretical model of the precautionary cash holdings. Our empirical results show that the fraction of a company’s shares that are held by the founding family members or their descendants influences the use of cash and equivalents, dividend policy and debt structure of a firm. Our results are robust to different estimation methods and alternative model specifications. We find that family firms tend to rely less on long-term debt financing, pay fewer dividends and carry higher precautionary cash balances.
Keywords: Family Firms, Cash Holdings, Financial Structure
Journal: American Journal of Economics and Business Administration
Pages: 1-10
Volume: 7
Issue: 1
Year: 2015
Month: May
DOI: 10.3844/ajebasp.2015.1.10
File-URL: https://thescipub.com/pdf/ajebasp.2015.1.10.pdf
File-Format: Application/pdf
File-URL: https://thescipub.com/abstract/ajebasp.2015.1.10
File-Format: text/html
Handle: RePEc:abk:jajeba:ajebasp.2015.1.10