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http://hdl.handle.net/10174/19815
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Title: | The Influence of Age and Size on Family-Owned Firms’ Financing Decisions: Empirical Evidence Using Panel Data |
Authors: | Serrasqueiro, Zélia Maçãs, Paulo Silva, Jacinto |
Keywords: | Age Size Family-owned firms Target debt ratio Panel data |
Issue Date: | Dec-2016 |
Publisher: | Long Range Planning |
Abstract: | Based on four samples of Portuguese family-owned firmsdi) 185 young, low-sized family-owned firms; ii) 167 young, high-sized familyowned
firms; iii) 301 old, low-sized family-owned firms; and iv) 353 old, high-sized family-owned firms d we show that age and size are
fundamental characteristics in family-owned firms’ financing decisions. The multiple empirical evidence obtained allows us to conclude
that the financing decisions of young, low-sized family-owned firms are quite close to the assumptions of Pecking Order Theory, whereas
those of old, high-sized family-owned firms are quite close to what is forecast by Trade-Off Theory. The lesser information asymmetry
associated with greater age, the lesser likelihood of bankruptcy associated with greater size, as well as the lesser concentration of
ownership and management consequence of greater age and size, may be especially important in the financing decisions of family-owned
firms. In addition, we find that GDP, interest rate and periods of crisis have a greater effect on the debt of young, low-sized family-owned
firms than on that of family-owned firms of the remainder research samples. |
URI: | http://www.elsevier.com/locate/lrp http://hdl.handle.net/10174/19815 |
Type: | article |
Appears in Collections: | GES - Publicações - Artigos em Revistas Internacionais Com Arbitragem Científica ECN - Publicações - Artigos em Revistas Internacionais Com Arbitragem Científica CEFAGE - Publicações - Artigos em Revistas Internacionais Com Arbitragem Científica
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