A Survey of the Literature on the Effect of Family Ownership on Capital Structure

DOI

10.2991/assehr.k.211020.260How to use a DOI?

Keywords

Capital structure, family ownership, debt financing

Abstract

As one of the major business participants, compare to others, family-owned firms are unique due to its special ownership structure, management style, and financing needs. Moreover, how to balance its debt and equity to create the best capital structure for the growth of the company is an interesting academic research topic. Therefore, the purpose of this paper is to review the related literature to find out the connection between family ownership and capital structure. This paper first reviews the theoretical background between family ownership and capital structure and then conducts an empirical test based on the empirical test of Anderson et al. Finally, conclude that generally, the magnitude of proportion that family takes in the company positively support the effectiveness of family ownership because of the decrease in coast of debt. However, the precisely magnitude of family ownership proportion and the underlying concept about the effectiveness of family ownership need to be discussed.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zien Huang
AU  - Suyuan Fan
AU  - Shangqi Wang
PY  - 2021
DA  - 2021/10/21
TI  - A Survey of the Literature on the Effect of Family Ownership on Capital Structure
BT  - Proceedings of the 2021 International Conference on Public Relations and Social Sciences (ICPRSS 2021)
PB  - Atlantis Press
SP  - 802
EP  - 808
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.211020.260
DO  - 10.2991/assehr.k.211020.260
ID  - Huang2021
ER  -