TY  - JOUR
AU  - Smirnova, Elena 
AU  - Tabriztchi, Sirousse 
AU  - Lange, Cary 
PY  - 2015
TI  - Cash Holdings, Use of Debt and Dividend Structure of Family Firms
JF  - American Journal of Economics and Business Administration
VL  - 7
IS  - 1
DO  - 10.3844/ajebasp.2015.1.10
UR  - https://thescipub.com/abstract/ajebasp.2015.1.10
AB  - 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.