Abstract
AbstractDespite the increasing interest in single family offices (SFOs) as an investment owned by an entrepreneurial family, research on SFOs is still in its infancy. In particular, little is known about the capital structures of SFOs or the roots of SFO heterogeneity regarding financial decisions. By drawing on a hand-collected sample of 104 SFOs and private equity (PE) firms, we compare the financing choices of these two investor types in the context of direct entrepreneurial investments (DEIs). Our data thereby provide empirical evidence that SFOs are less likely to raise debt than PE firms, suggesting that SFOs follow pecking-order theory. Regarding the heterogeneity of the financial decisions of SFOs, our data indicate that the relationship between SFOs and debt financing is reinforced by the idiosyncrasies of entrepreneurial families, such as higher levels of owner management and a higher firm age. Surprisingly, our data do not support a moderating effect for the emphasis placed on socioemotional wealth (SEW).
Publisher
Springer Science and Business Media LLC
Subject
Economics and Econometrics,General Business, Management and Accounting
Reference95 articles.
1. Amit, R., Liechtenstein, H., Prats, M.J., Millay, T., & Pendleton, L.P. (2008). Single family offices: Private wealth management in the family context. Research report. Philadelphia: Wharton University.
2. Amore, M. D., Minichilli, A., & Corbetta, G. (2011). How do managerial successions shape corporate financial policies in family firms? Journal of Corporate Finance, 17(4), 1016–1027. https://doi.org/10.1016/j.jcorpfin.2011.05.002.
3. Ampenberger, M., Schmid, T., Achleitner, A. K., & Kaserer, C. (2013). Capital structure decisions in family firms: Empirical evidence from a bank-based economy. Review of Managerial Science, 7(3), 247–275. https://doi.org/10.1007/s11846-011-0077-2.
4. Anderson, R. C., & Reeb, D. M. (2003). Founding-family ownership, corporate diversification, and firm leverage. Journal of Law and Economics, 46(2), 643–680. https://doi.org/10.1086/37711.
5. Ariely, D., Huber, J., & Wertenbroch, K. (2005). When do losses loom larger than gains? Journal of Marketing Research, 42(2), 134–138. https://doi.org/10.1509/jmkr.42.2.134.62283.
Cited by
13 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献