The debate on rented assets capitalization: The economic impact on family firms

Fitó, M. Àngels; Moya, Soledad Prats; Orgaz, Neus

doi:10.1016/j.jfbs.2013.10.001

Cited by 3 publications

(2 citation statements)

References 29 publications

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“…Finally, a number of studies focus on alternative forms of debt financing. Di Giuli, Caselli, and Gatti (2011), Fitó, Moya, and Orgaz (2013), and Landry, Fortin, and Callimaci (2013) stress to investigate also other financial instruments used by small- and medium-sized enterprises (SMEs) such as leasing or factoring. Evidence is found that family firms are less eager to use leasing (Landry et al, 2013) and that the level of financial sophistication (making use of nonbasic financial products such as leasing) increases over generations and when the family firm is characterized by an external CFO or external shareholder (Di Giuli et al, 2011).…”

Section: Where Are We Now?mentioning

confidence: 99%

Financing Decisions in Family Businesses: A Review and Suggestions for Developing the Field

Michiels

Molly

2017

Family Business Review

123

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Motivated by the growing attention to the financing decisions of family firms, this review brings together the two highly relevant research fields of family business and finance. This study critically reviews 131 articles on financing decisions in family businesses, published between 1977 and 2016 in 64 finance and management journals. We develop a state of the art on family business financing literature and present a model to guide extant and future research by identifying gaps across the theoretical perspectives and across context-specific elements such as family business heterogeneity and country-specific factors.

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Section: Where Are We Now?mentioning

confidence: 99%

Financing Decisions in Family Businesses: A Review and Suggestions for Developing the Field

Michiels

Molly

2017

Family Business Review

123

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“…Family firms are described in the literature as having a different financial structure from other quoted companies. Literature provides several studies dedicated to the family firms' financial structures (Fit o et al, 2013;Pindado et al, 2015). Some studies have found that family firms adopt highly conservative strategies.…”

Section: Literature Reviewmentioning

confidence: 99%

Capital structure in family firms: the role of innovation activity and institutional investors

Harasheh

Capocchi

Amaduzzi

2022

EMJB

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PurposeThere is still an ongoing debate on the value relevance of capital structure and its determinants. Recently the issue has been explored in family firms after being explored in mature firms. This paper investigates the role of institutional investors and the firm's innovation activity in influencing the firm's decision and ability to acquire debt capital.Design/methodology/approachA large sample of 700 privately-held family firms in Italy from 2010 to 2019. Two analysis techniques are used: panel analysis and path analysis. The value of debt and the debt ratio are used as leverage measures. The value of patent (as a proxy for innovation) and institutional investor are the explanatory variables.FindingsThe results show that institutional investors have no relationship with financial leverage measures except when controlling for an interaction variable (Institutional investors × Lombardy region). The patent value is positively correlated with debt; however, the ratio patent-to-asset is negatively related to financial leverage indicating higher risk exposure. The nonlinearity test demonstrates a turning point when the relationship between patent value and debt inverts.Practical implicationsFirms should monitor their innovation activity since excessive innovation increases risk exposure and affects financing opportunities and value. The involvement of institutional investors does not always enhance value.Originality/valueExisting literature focuses separately on family firm innovations and financial leverage as outcome variables, emphasizing the role of institutional investors in both fields by adopting agency theory and socioemotional wealth framework. In this study, the authors go further by merging both relationships, investigating the dynamics of the institutional-family firm innovation relationship in influencing the firm's capital structure. The authors contribute to the ongoing debate by providing original findings on capital structure, governance and innovation, supported by rigorous methods to enhance family firms' decision-making.

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Financial accounting in family business: a systematic literature review and future research agenda

Manzi,

Netti,

Favino

et al. 2024

J Manag Gov

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Academic researchers have recently recognised the impact of family firms’ idiosyncrasies and characteristics on financial accounting practices, and identified distinctions between family and non-family businesses. However, this issue still needs appropriate systematisation and discussion. It is important to understand how family businesses’ features shape financial accounting phenomena, but the most authoritative review on the topic dates back more than 10 years. We therefore conducted a systematic review of 133 articles on financial accounting in family firms published in peer-reviewed journals up to 2023. We aimed to assess what scholars have explored so far on this topic, interpreting findings using three levels of analysis: family, business, and individual. The novelty of our paper comes from using this framework to create a thematic map that provides a comprehensive overview of the current research on this topic and developing an extensive research agenda for future studies. The article also provides practical implications for family firm managers, practitioners, and regulators by clarifying the influence of characteristics of family businesses on accounting practices.

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The debate on rented assets capitalization: The economic impact on family firms

Cited by 3 publications

References 29 publications

Financing Decisions in Family Businesses: A Review and Suggestions for Developing the Field

Financing Decisions in Family Businesses: A Review and Suggestions for Developing the Field

Capital structure in family firms: the role of innovation activity and institutional investors

Financial accounting in family business: a systematic literature review and future research agenda

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