Trade credit and family control

Nieves Lidia Díaz-Díaz (), Pedro J. García-Teruel () and Pedro Martínez-Solano ()
Additional contact information
Nieves Lidia Díaz-Díaz: University of Las Palmas de Gran Canaria
Pedro J. García-Teruel: University of Murcia
Pedro Martínez-Solano: University of Murcia

Review of Managerial Science, 2025, vol. 19, issue 8, No 10, 2529-2568

Abstract: Abstract This paper analyses whether trade credit strategies depend on the family identity of the controlling shareholder. We use a sample of 4,022 private Spanish firms for the years 2004 and 2013 and examine family firm heterogeneity by analysing different thresholds of control, involvement in management and firm identification with the family name. The results reveal that family firms have more restrictive trade credit strategies than non-family firms. Moreover, among family-controlled firms, those with the strongest identification between the family shareholders and their firms are the most restrictive. However, family-controlled firms reduced trade credit less after the financial crisis of 2008. These firms supported their customers by limiting the impact of liquidity shocks during the crisis.

Keywords: Family firms; Heterogeneity; Customers; Trade credit granted; Controlling shareholders (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11846-024-00821-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:rvmgts:v:19:y:2025:i:8:d:10.1007_s11846-024-00821-6

Ordering information: This journal article can be ordered from
http://www.springer.com/business/journal/11846

DOI: 10.1007/s11846-024-00821-6

Access Statistics for this article

Review of Managerial Science is currently edited by R. Ewert and W. Kürsten

More articles in Review of Managerial Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().