Payout differences between family and nonfamily listed firms: a socioemotional wealth perspective

Abstract

Purpose -The purpose of this paper is to explain family firm payout decisions based on socioemotional wealth (SEW) considerations. Design/methodology/approach -A sample of publicly listed Canadian companies is examined for the period from 2003 to 2008. Distinguishing family firms from nonfamily firms, a Probit regression is used to analyze the likelihood of making a payout. For payout firms, regressions are used to analyze the relationship between payout level (dividends and share repurchases) and payout mix and family firms. Findings -Results indicate that family firms are more likely to make a payout than nonfamily firms. Among payout firms, the level of payout among payout firms is lower for family firms than for nonfamily firms and their portion of payout in the form of dividends is higher. Lone founder family firms have a lower likelihood of making payouts than other family firms. However, among payout firms, they pay out more than other family firms and have a smaller percentage of their total payout in dividends than other family firms. Research limitations/implications -Results are impacted by the definition of what constitutes a family firm. Family ownership was used as a proxy for the underlying SEW considerations. Future research could involve interviews with family firm representatives to investigate the relative importance of SEW considerations in their payout decisions. Originality/value -In providing an alternative theoretical framing of family firms' payout policies, the study suggests that payout differences between family and nonfamily firms may be driven in part by SEW considerations.

Dividend decisions in family businesses: A systematic review and research agenda

“…The latter especially holds in family firms experiencing low growth-opportunities. When contrasting lone founder firms to other family firms, Deslandes et al (2016) find that the former have a lower likelihood for making payouts in their sample of Canadian public firms. Finally, González et al (2014) investigate the impact of different facets of family influence in the firm and find that family influence in ownership reduces the likelihood of dividend payment.…”

“…When contrasting lone founder firms to other family firms, Deslandes et al. (2016) find that the former have a lower likelihood for making payouts in their sample of Canadian public firms. Finally, González et al.…”

Pengaruh Kepemilikan Keluarga Terhadap Kebijakan Dividen Dengan Board of Independence Sebagai Variabel Moderasi

“…Output penelitian ini berseberangan dengan penelitian Benjamin et al, (2016), Isakov dan Weisskopf (2015), Huang et al, (2012) dan Atmaja (2010) yang membuktikan bahwa semakin besar kepemilikan saham oleh keluarga pada sebuah perusahaan akan menekan manajemen perusahaan untuk meningkatkan dividen yang diberikan kepada shareholder. Penelitian ini justru menguatkan hasil penelitian sebelumnya yang menyatakan bahwa pengaruh konsentrasi kepemilikan keluarga atas saham perusahaan menyebabkan dividend payout yang diterima pemegang saham minoritas lebih rendah jika merujuk pada penelitian Harada dan Nguyen (2012), Djebali dan Belanes (2015), Deslandes et al, (2016), Mulyani et al, (2016), Setiawan et al, (2016), dan Atmaja (2017).…”

“…Para peneliti tersebut antara lain, Benjamin et al, (2016), Isakov dan Weisskopf (2015), Huang et al, (2012), dan Atmaja (2010). Sebaliknya hasil penelitian oleh Harada dan Nguyen (2012), Djebali dan Belanes (2015), Deslandes et al, (2016), Mulyani et al, (2016), Setiawan et al, (2016), dan Atmaja (2017) justru menunjukkan fakta bahwa pengaruh konsentrasi kepemilikan keluarga atas saham perusahaan menyebabkan dividend payout yang diterima pemegang saham minoritas lebih rendah.…”

Entrepreneurial orientation and socioemotional dimensions in small family hotels: do they impact business performance?

“…(Berrone et al, 2012) provides a theoretical basis for the construction of family-specific performance measures developed in this study. This model is increasingly attracting the interest of many other researchers analysing family firms (Cruz et al, 2011;Deslandes et al, 2016;Duran, 2016;Mart ınez-Alonso et al, 2018;Schulze, 2016;Shen, 2018).…”