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

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

<a href="/cs/project/TL02000434" target="_blank" >TL02000434: Rodinné podniky: generátory hodnoty a určování hodnoty v procesu nástupnictví</a><br>

Návaznosti

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

Rok uplatnění

2020

Kód důvěrnosti údajů

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

Název periodika

Investment Management and Financial Innovations

ISSN

1810-4967

e-ISSN

1812-9358

Svazek periodika

17

Číslo periodika v rámci svazku

3

Stát vydavatele periodika

UA - Ukrajina

Počet stran výsledku

13

Strana od-do

27-39

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-85091859402