The Impact of Family Ownership on Capital Structure and Business Performance

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F46747885%3A24310%2F23%3A00011350" target="_blank" >RIV/46747885:24310/23:00011350 - isvavai.cz</a>

Result on the web

<a href="https://www.mdpi.com/2227-7072/11/4/121" target="_blank" >https://www.mdpi.com/2227-7072/11/4/121</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.3390/ijfs11040121" target="_blank" >10.3390/ijfs11040121</a>

Result language

angličtina

Original language name

The Impact of Family Ownership on Capital Structure and Business Performance

Original language description

Financial decision making in family companies is a topical issue that has arisen from an awareness of the significant impact of family businesses on the economies of individual countries. This article deals with the capital structure and business performance of family firms in the Czech Republic, as there is still a significant gap in family business research and empirical verification. This study aims to investigate Czech family businesses’ corporate financing practices and compare them with population data from all active companies. The literature distinguishes between the positive and negative impacts of family ownership on capital structure and performance. Our empirical findings hypothesise that family businesses are more leveraged than non-family firms and vice versa. At the same time, a slightly positive impact from family influence on firm financial performance is indicated. This study uses descriptive statistics to detect family influence on corporate capital structure and financial performance regarding business sectors. The results of this study indicate that Czech family firms are less indebted than all/non-family businesses, and that they have proved to be more profitable in terms of ROEs and ROAs. Furthermore, significant differences in financial characteristics have been identified not just between individual business sectors but also between sample family firms and all/non-family firms within one business sector.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2023

Confidentiality

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

Name of the periodical

International Journal of Financial Studies

ISSN

2227-7072

e-ISSN

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Volume of the periodical

11

Issue of the periodical within the volume

4

Country of publishing house

CH - SWITZERLAND

Number of pages

17

Pages from-to

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UT code for WoS article

001130590100001

EID of the result in the Scopus database

2-s2.0-85180642829