An Analysis on the Capital Structure of Family Firms

Aclan Omağ and Altan Masun
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Aclan Omağ: Marmara University
Altan Masun: Marmara University

Journal of Finance Letters (Maliye ve Finans Yazıları), 2022, vol. 37, issue 118, 221-238

Abstract: Capital structure is an element of financial decisions and is shaped by various factors. The liability part of the balance sheet helps us to understand how the capital structure is formed. Family firms are defined as businesses where different resources are used together with their unique structures. There may be different financing preferences when there is growth over time in family businesses which benefit more from equity capital in their establishment and early periods. In this study, in order to determine the capital structure of a sample family business, the balance sheets for the 2017-2019 period were examined by vertical analysis method. The results obtained showed that the company’s capital structure was dominated by short-term debts in the period under review. Other sources utilized by the company were equity and long term liabilities, respectively.

Keywords: Family Firms; Capital Structure; Vertical Analysis (search for similar items in EconPapers)
JEL-codes: G30 G32 M49 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:acc:malfin:v:37:y:2022:i:118:p:221-238

DOI: 10.33203/mfy.1148560

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