The impact of family ownership and under-aspiration performance on a firm’s capital structure
Open Access
- 1 September 2021
- journal article
- Published by LLC CPC Business Perspectives in Investment Management and Financial Innovations
- Vol. 18 (3), 183-193
- https://doi.org/10.21511/imfi.18(3).2021.17
Abstract
Research on the capital structure of family firms has flourished in recent years, but the impact of performance aspiration and family ownership together on capital structure remains inadequately investigated. Therefore, the purpose of this study is to explore the impact of family ownership and under-aspiration performance and their interaction on capital structure. Panel data estimations were applied with a unique dataset of 3.857 observations from 387 public firms in Vietnam from 2010 to 2020 (134 family firms and 253 non-family firms). The results reveal that family ownership and under-aspiration performance each has a positive effect on capital structure. However, under-aspiration performance negatively moderates the positive effect of family ownership on capital structure. These findings contribute to a stream of studies on the capital structure of family firms by exploring the role of under-aspiration performance, as well as provide important implications for shareholders, managers and debtors in financial management.Keywords
This publication has 35 references indexed in Scilit:
- The mystery of zero-leverage firmsJournal of Financial Economics, 2013
- Control considerations, creditor monitoring, and the capital structure of family firmsJournal of Banking & Finance, 2013
- Testing for Granger non-causality in heterogeneous panelsEconomic Modelling, 2012
- Capital structure decisions in family firms: empirical evidence from a bank-based economyReview of Managerial Science, 2011
- Family firms and debt: Risk aversion versus risk of losing controlSSRN Electronic Journal, 2011
- Performance Feedback, Slack, and The Timing of AcquisitionsThe Academy of Management Journal, 2008
- Family Values: Ownership Structure and Performance of Canadian FirmsSSRN Electronic Journal, 2008
- Are family firms really superior performers?Journal of Corporate Finance, 2007
- Founding‐Family Ownership, Corporate Diversification, and Firm LeverageThe Journal of Law and Economics, 2003
- A Behavioral Agency Model of Managerial Risk TakingAcademy of Management Review, 1998