Financing policy of large listed family businesses: Evidence from the Arab world

Abstract

This paper aims to contribute to the literature on the capital structure and financing behavior of large listed family businesses by examining the differences and/or similarities in the determinants influencing the financing policy in the Arab world. The study focuses on two samples of equal size, consisting of 103 large listed family firms and 103 large listed non-family firms, covering the period from 2013 to 2019. Through a quantitative analysis of panel data, the research investigates the level of indebtedness and its determinants in these two categories of firms. The findings of this study reveal significant differences in the financing patterns between large listed family and non-family firms. These findings contribute to our understanding of the unique characteristics and preferences of large listed family firms in the Arab world, a region that has received limited attention in previous studies (Basly, 2017). By exploring this developing and relatively unexplored region, the study fills a gap in the literature and expands our knowledge of the capital structure dynamics within large listed family businesses