The effect of family business professionalization on dividend payout

Michiels, Anneleen; Uhlaner, Lorraine; Dekker, Julie

doi:10.1108/jsbed-01-2017-0023

Cited by 30 publications

(33 citation statements)

References 92 publications

(182 reference statements)

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“…In addition to that, bibliometric results have shown that financial decision making within family businesses is a growing field of research. That trend was reported by other works (Michiels, & Molly, 2017;Lozano, 2015).…”

Section: General Trendssupporting

confidence: 88%

“…By reviewing the literature on the above matter, we conclude that great efforts have been made to explore family businesses and the peculiarities of their financial policies but, these efforts remain insufficient. The findings of this review highlighted that financial choices depend on several factors, both cognitive and emotional and that knowledge on capital structure decisions is still dispersed and inconclusive as reported by (Michiels & Molly, 2017). Additionally, research on investment policy has been limited to the R&D investment and private equity investors while research on dividends policy in family businesses was considerably underestimated.…”

Section: Discussionmentioning

confidence: 92%

“…It is one of the key decisions affecting the value of the business (Nurlela, Sulastri & Hanafi, 2019). Understanding financing decisions is of great importance for family businesses because of their "peculiar financial logic" (Michiels & Molly, 2017). Finally, dividends are a mean of redistributing a company's profits to its shareholders and are one of the main sources of return on investment (Hulté n, 2020).…”

Section: Financial Policiesmentioning

confidence: 99%

“…It is also a strategic policy that boards of directors face (Gyapong, Ahmed, Ntim, & Nadeem, 2019). Besides, many questions about dividends in family firms remain unanswered (Michiels, Uhlaner & Dekker, 2017).…”

Section: Financial Policiesmentioning

confidence: 99%

See 3 more Smart Citations

Financial Behavior of Family Businesses: A Bibliometric and Systematic Literature Review

Quiddi¹,

Habba²

2021

IJFR

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The aim of this paper is to identify some holistic insights and to assess the evolution of the “financial behavior of family businesses” as a field of research. Authors performed an objective, and comprehensive analysis using a bibliometric and systematic review. Thus, three major databases (Scopus, Web of Science, and EBSCO host) were queried and 256 retrieved publications were analyzed. Findings showed an increasing dynamic of the number of publications from 1990 to 2020. The text mining of retrieved publications enables a thematic analysis of the intellectual streams and key concepts underpinning financial policies within family businesses. From a managerial perspective, a review of literature on financial behavior can help raise awareness among family members, managers, and policymakers about family business’ peculiarities that make the financial decisions complex. Finally, this paper reveals trends but also some knowledge gaps to consider in future research about the study of financial decisions within the context of family businesses.

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Section: General Trendssupporting

confidence: 88%

Section: Discussionmentioning

confidence: 92%

Section: Financial Policiesmentioning

confidence: 99%

Section: Financial Policiesmentioning

confidence: 99%

See 2 more Smart Citations

Financial Behavior of Family Businesses: A Bibliometric and Systematic Literature Review

Quiddi¹,

Habba²

2021

IJFR

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“…For example, using a sample of Belgian small companies, Vandemaele and Vancauteren (2015) show that dividend payout is low when a family CEO runs the business with a family-dominated board. The finding is consistent with the view that socioemotional objectives as well as professionalization of family business, thereby leading to nonfamily involvement in governance systems, are important drivers of dividend policies of private small companies (Michiels et al, 2017). Similarly, Calabrò et al (2020) document that socioemotional factors affect financial reporting quality and earnings management strategies (the choice between accrual versus real earnings management) in Italian private family firms.…”

Section: Introductionsupporting

confidence: 83%

Dividends and tax avoidance as drivers of earnings management: Evidence from dividend-paying private SMEs in Finland

Karjalainen

Kasanen

Kinnunen

et al. 2020

Journal of Small Business Management

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Using a sample covering practically all dividend-paying small and medium-sized private companies in Finland during 2006-2010, we document that earnings management in these companies is driven by two concurrent forces: the willingness to pay (tax-exempt) dividends and avoiding unnecessary company income tax. Moreover, we show that the need for incomeincreasing earnings management enabling current dividend distribution is mitigated by the amount of retained earnings from prior years. This article adds to the existing literature by providing empirical evidence for dividend and tax-driven earnings management in private SMEs facing neither political pressures nor capital market incentives for earnings disclosures.

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Variable selection for classification and forecasting of the family firm's socioemotional wealth

Álvarez‐Díez

Baixauli‐Soler

Belda‐Ruiz

et al. 2023

Journal of Forecasting

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Socioemotional wealth (SEW) refers to those family‐centered goals that are likely to have a major influence on the strategic decision‐making process and performance of family firms. Many studies have used indirect indicators related to family involvement in ownership and management to measure SEW; meanwhile, others have developed scales to directly measure the level and importance of SEW in family firms. Limitations of both indirect and direct measures of SEW lead empirical research on SEW to be under threat. In the current study, we use random forests to identify the important indicators related to financial and economic decisions, as well as family‐related measures, for explaining the family firms' SEW and to design a good prediction model using the smallest set of nonredundant indicators. Our results show that the model that exhibits the minimum out‐of‐bag sample (OOB) error rate includes variables that refer to the presence of family members in the firm's management positions, long‐term nonfinancial debt, personnel expenditures, long‐term financial investments, short‐term financial debt, average storage period, and accounts receivables. For prediction, the model with a reasonably low estimated classification error includes only three variables, which refer to the presence of family members in the firm's management positions, long‐term nonfinancial debt, and accounts receivables.

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The effect of family business professionalization on dividend payout

Cited by 30 publications

References 92 publications

Financial Behavior of Family Businesses: A Bibliometric and Systematic Literature Review

Financial Behavior of Family Businesses: A Bibliometric and Systematic Literature Review

Dividends and tax avoidance as drivers of earnings management: Evidence from dividend-paying private SMEs in Finland

Variable selection for classification and forecasting of the family firm's socioemotional wealth

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