Excess control of family board seats and corporate financing constraints

Yuqi Yang and Tianle Meng

Managerial and Decision Economics, 2025, vol. 46, issue 1, 166-182

Abstract: We examine the relationship between excess control of family board seats (ECFBS) and financing constraints (FCs) using 2008–2021 data for listed family firms in China. We find that ECFBS intensifies Type II agency problems, thereby worsens corporate FCs. We also investigate the impact of family firm founder characteristics, family owner characteristics, and external shareholder equity structure on the ECFBS and FCs. Our findings provide evidence of the encroachment effect of family control.

Date: 2025
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https://doi.org/10.1002/mde.4367

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:46:y:2025:i:1:p:166-182

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