Understanding debt financing decisions in family firms – Are there new insights from the recent literature?

Abstract

PurposeConsidering the important development that research on debt financing decisions of family firms (FFs) has undergone in recent years, we aim to assess the current state of the literature with the latest advances in this field.Design/methodology/approachWe undertake a systematic review of 42 journal articles published on this topic in recent years.FindingsAs a result of our work, new directions for the advancement of this research field are established, such as the consideration of different methodologies and sources of heterogeneity of FFs, the need for an integration of the supply and demand side of funds or the importance of evaluating a diversity of firm-specific and contextual factors affecting the debt financial behaviour of FFs.Originality/valueConsidering the notable development of the field of debt financing decisions of FFs in recent years, we find it opportune and valuable to revise the advances and trends published in the most recent papers. Thus, by connecting previous and current knowledge, we provide an updated integrative model of the state of the art and posit key research questions to solve in the future.