Does family ownership structure affect investment-cash flow sensitivity? Evidence from Italian SMEs
Valentina Peruzzi ()
No wpC16, CERBE Working Papers from CERBE Center for Relationship Banking and Economics
The aim of this paper is to investigate whether family control, family management and family ownership concentration affect the investment-cash flow sensitivity of small- and medium-sized enterprises. By analysing a sample of Italian SMEs for the period 2004-2013, I find that family-owned businesses are significantly associated with higher investment-cash flow dependence. This relation, however, is found to be driven by two distinct factors: (i) the presence of a highly concentrated family ownership (ownership concentration channel) and (ii) the active involvement of the family in the business (family management channel).
Keywords: family firms; investment-cash flow sensitivity; financing constraints; family CEO; ownership concentration. (search for similar items in EconPapers)
JEL-codes: G31 G32 (search for similar items in EconPapers)
Pages: 38 pages
New Economics Papers: this item is included in nep-acc, nep-cfn, nep-eur and nep-sbm
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Journal Article: Does family ownership structure affect investment-cash flow sensitivity? Evidence from Italian SMEs (2017)
Working Paper: Does family ownership structure affect investment-cash flow sensitivity? Evidence from Italian SMEs (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:lsa:wpaper:wpc16
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