The effect of family control and management on performance, capital structure, cash holding, and cash dividends
Tipo
Artigo
Data de publicação
2015
Periódico
Corporate Ownership and Control
Citações (Scopus)
5
Autores
Portal M.T.
Basso L.F.C.
Basso L.F.C.
Orientador
Título da Revista
ISSN da Revista
Título de Volume
Membros da banca
Programa
Resumo
© 2015, Virtus Interpress. All right rserved.This study investigates the effect of family firm on corporate performance and financial policy (capital structure, cash holding, and cash dividends). Using a sample of Brazilian firms, the study uses a treatment effect model to address self-selection and endogeneity problems. The results show that family firm has a negative net effect on performance. Family control has an effect on financial policies that indicate a aversive behavior to preserve control. The results indicate less problem of free cash flow and more risk-taking behavior in family-manage companies, suggesting that such aversion behavior is reduced when the family controls and manages the firm. This is the first study that takes into account the effect of family firm behavior through multiple financial policies.