The preferred usage of equity and debt financing in family businesses: evidence from Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F04274644%3A_____%2F20%3A%230000573" target="_blank" >RIV/04274644:_____/20:#0000573 - isvavai.cz</a>

Result on the web

<a href="https://businessperspectives.org/journals/investment-management-and-financial-innovations/issue-360/the-preferred-usage-of-equity-and-debt-financing-in-family-businesses-evidence-from-czech-republic" target="_blank" >https://businessperspectives.org/journals/investment-management-and-financial-innovations/issue-360/the-preferred-usage-of-equity-and-debt-financing-in-family-businesses-evidence-from-czech-republic</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.21511/imfi.17(3).2020.03" target="_blank" >10.21511/imfi.17(3).2020.03</a>

Result language

angličtina

Original language name

The preferred usage of equity and debt financing in family businesses: evidence from Czech Republic

Original language description

Czech family businesses are currently experiencing their first changeover of generations in history. Either the first generation (founders or successors) or two or more generations collectively operate in management and administrative authorities. The purpose of this article is to compare and evaluate preference for the use of debt or equity financing in family businesses with the differing involvement of generations and the diversity of its allocation for the specific need of growing the company. This empirical study was performed on the basis of a qualitative analysis of 245 family businesses. Hypotheses were confirmed using the Pearson correlation coefficient. This study confirms the dependence of the use of equity and debt financing on the number of generations in management. This brings differing perspectives, opinions, and practices for financial management in the sense of a preference for the use of debt or equity financing. The need for debt arises at the moment of compensating the transfer of ownership between generations. The results of the analysis indicate that family businesses managed by one generation prefer equity financing, companies managed by first and second generations prefer debt financing, and companies managed by second and third generations prefer equity financing.

Czech name

—

Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

—

OECD FORD branch

50206 - Finance

Project

<a href="/en/project/TL02000434" target="_blank" >TL02000434: Family businesses: Value drivers and value determination in the process of succession</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2020

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Investment Management and Financial Innovations

ISSN

1810-4967

e-ISSN

1812-9358

Volume of the periodical

17

Issue of the periodical within the volume

3

Country of publishing house

UA - UKRAINE

Number of pages

13

Pages from-to

27-39

UT code for WoS article

—

EID of the result in the Scopus database

2-s2.0-85091859402