@article {10.3844/ajebasp.2015.1.10,
article_type = {journal},
title = {Cash Holdings, Use of Debt and Dividend Structure of Family Firms},
author = {Smirnova, Elena and Tabriztchi, Sirousse and Lange, Cary},
volume = {7},
year = {2015},
month = {May},
pages = {1-10},
doi = {10.3844/ajebasp.2015.1.10},
url = {https://thescipub.com/abstract/ajebasp.2015.1.10},
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.},
journal = {American Journal of Economics and Business Administration},
publisher = {Science Publications}
}