Abstract
Family businesses are a leading organizational form in economies all over the world. There is a growing interest around family firms’ financial behavior, in terms of financing and investment choices, performance, and disclosure, as a number of questions are still open. In this chapter we present the literature background and our research questions. Theoretical and methodological choices, structure of the book and target audience are illustrated as well.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
http://www.ffi.org/?page = GlobalDataPoints. Last accessed 18th April 2018.
- 2.
http://www.ffi.org/?page = GlobalDataPoints. Last accessed 18th April 2018.
- 3.
http://www.ffi.org/?page = GlobalDataPoints. Last accessed 18th April 2018.
References
Achleitner, A. K., Günther, N., Kaserer, C., & Siciliano, G. (2014). Real earnings management and accrual-based earnings management in family firms. European Accounting Review, 23(3), 431–461.
Anderson, R. C., & Reeb, D. M. (2003a). Founding-family ownership, corporate diversification, and firm leverage. The Journal of Law and Economics, 46(2), 653–684.
Anderson, R. C., & Reeb, D. M. (2003b). Founding-family ownership and firm performance: Evidence from the S&P 500. Journal of Finance, 58(3), 1301–1328.
Anderson, R. C., Mansi, S. A., & Reeb, D. M. (2003). Founding family ownership and the agency cost of debt. Journal of Financial Economics, 68(2), 263–285.
Astrachan, J. C., & Jaskiewicz, P. (2008). Emotional returns and emotional costs in privately held family businesses: Advancing traditional business valuation. Family Business Review, 21, 139–149.
Astrachan, J. H., Klein, S. B., & Smyrnios, K. X. (2002). The F-PEC scale of family influence: A proposal for solving the family business definition problem. Family Business Review, 15(1), 45–58.
Bacci, S., Cirillo, A., Mussolino, D., & Terzani, S. (2017). The influence of family ownership dispersion on debt level in privately held firms. Small Business Economics, 1–20.
Barontini, R., & Caprio, L. (2006). The effect of family control on firm value and performance, evidence from continental Europe. European Financial Management, 12(5), 689–723.
Benavides-Velasco, C. A., Quintana-García, C., & Guzmán-Parra, V. F. (2013). Trends in family business research. Small Business Economics, 40(1), 41–57.
Bennedsen, M., & Nielsen, K. (2010). Incentive and entrenchment effects in European ownership. Journal of Banking & Finance, 34, 2212–2229.
Berrone, P., Cruz, C., Gómez-Mejía, L. R., & Larraza-Kintana, M. (2010). Socioemotional wealth and corporate responses to institutional pressures: Do family-controlled firms pollute less? Administrative Science Quarterly, 55(1), 82–113.
Berrone, P., Cruz, C., & Gómez-Mejía, L. R. (2012). Socioemotional wealth in family firms theoretical dimensions, assessment approaches, and agenda for future research. Family Business Review, 25, 258–279.
Boers, B., Ljungkvist, T., Brunninge, O., & Nordqvist, M. (2017). Going private: A socioemotional wealth perspective on why family controlled companies decide to leave the stock-exchange. Journal of Family Business Strategy, 8(2), 74–86.
Chirico, F., & Bau, M. (2014). Is the family an “asset” or “liability” for firm performance? The moderating role of environmental dynamism. Journal of Small Business Management, 52(2), 210–225.
Chrisman, J. J., Chua, J. H., & Litz, R. A. (2004). Comparing the agency costs of family and non–family firms: Conceptual issues and exploratory evidence. Entrepreneurship Theory and Practice, 28(4), 335–354.
Cohen, D. A., & Zarowin, P. (2010). Accrual-based and real earnings management activities around seasoned equity offerings. Journal of Accounting and Economics, 50(1), 2–19.
Colli, A., Pérez, P. F., & Rose, M. B. (2003). National determinants of family firm development? Family firms in Britain, Spain, and Italy in the 19th and 20th centuries. Enterprise & Society, 4(1), 28–64.
Cruz, C., Justo, R., & De Castro, J. O. (2012). Does family employment enhance MSEs performance?: Integrating socioemotional wealth and family embeddedness perspectives. Journal of Business Venturing, 27(1), 62–76.
European Commission. (2015). Promoting entrepreneurship: Family business—Main challenges faced by family firms. Retrieved from http://ec.europa.eu/growth/smes/promoting-entrepreneurship/we-work-for/family-business/index_en.htm
Fahlenbrach, R. (2009). Founder-CEOs, investment decisions, and stock market performance. Journal of Financial and Quantitative Analysis, 44(2), 439–466.
Fan, Q. (2007). Earnings management and ownership retention for initial public offering firms: Theory and evidence. Accounting Review, 82(1), 27–64.
Ferramosca, S., & Ghio, A. (2018). Earnings management in family firms. In Accounting choices in family firms (pp. 103–138). Cham: Springer.
Franks, J., Mayer, C., Volpin, P., & Wagner, H. F. (2011). The life cycle of family ownership: International evidence. Review of Financial Studies, 25(6), 1675–1712.
Gavana, G., Gottardo, P., & Moisello, A. M. (2017). Sustainability reporting in family firms: A panel data analysis. Sustainability, 9(1), 38.
Ghosh, A. A., & Moon, D. (2010). Corporate debt financing and earnings quality. Journal of Business Finance & Accounting, 37(5–6), 538–559.
Gomez-Mejia, L. R., Welbourne, T. M., & Wiseman, R. M. (2000). The role of risk sharing and risk taking under gainsharing. Academy of Management Review, 25(3), 492–507.
Gómez-Mejía, L. R., Haynes, K. T., Nunez-Nickel, M., Jacobson, K. J. L., & Moyano-Fuentes, J. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52, 106–137.
Gómez-Mejía, L. R., Makri, M., & Larraza-Kintana, M. (2010). Diversification decisions in family-controlled firms. Journal of Management Studies, 47, 223–252.
Gómez-Mejía, L. R., Cruz, C., Berrone, P., & De Castro, J. (2011). The bind that ties: Socioemotional wealth preservation in family firms. Academy of Management Annals, 5, 653–707.
Gómez-Mejía, L. R., Campbell, J. T., Martin, G., Hoskisson, R. E., Makri, M., & Sirmon, D. G. (2014a). Socioemotional wealth as a mixed gamble: Revisiting family firm R&D investments with the behavioral agency model. Entrepreneurship Theory and Practice, 38(6), 1351–1374.
Gómez-Mejía, L. R., Cruz, C., & Imperatore, C. (2014b). Financial reporting and the protection of socioemotional wealth in family-controlled firms. European Accounting Review, 23(3), 387–402.
Gómez-Mejía, L. R., Patel, P. C., & Zellweger, T. M. (2018). In the horns of the dilemma: Socioemotional wealth, financial wealth, and acquisitions in family firms. Journal of Management, 44(4), 1369–1397.
Gottardo, P., & Moisello, A. (2014). The capital structure choices of family firms: Evidence from Italian medium-large unlisted firms. Managerial Finance, 40(3), 254–275.
Handler, W. C. (1989). Methodological issues and considerations in studying family businesses. Family Business Review, 2(3), 257–276.
Huybrechts, J., Voordeckers, W., & Lybaert, N. (2013). Entrepreneurial risk taking of private family firms: The influence of a nonfamily CEO and the moderating effect of CEO tenure. Family Business Review, 26(2), 161–179.
Kotlar, J., Signori, A., De Massis, A., & Vismara, S. (2018). Financial wealth, socioemotional wealth, and IPO underpricing in family firms: A two-stage gamble model. Academy of Management Journal, 61(3), 1073–1099.
Leitterstorf, M. P., & Rau, S. B. (2014). Socioemotional wealth and IPO underpricing of family firms. Strategic Management Journal, 35(5), 751–760.
Liu, Y., Ning, Y., & Davidson III, W. N. (2010). Earnings management surrounding new debt issues. Financial Review, 45(3), 659–681.
Martin, G., Campbell, J. T., & Gómez-Mejía, L. R. (2016). Family control, socioemotional wealth and earnings management in publicly traded firms. Journal of Business Ethics, 133(3), 453–469.
McConaughy, D. L., Matthews, C. H., & Fialko, A. S. (2001). Founding family controlled firms: Performance, risk, and value. Journal of Small Business Management, 39(1), 31–49.
Migliori, S., Maturo, F., & Paolone, F. (2018). Capital structure determinants in family firms: An empirical analysis in context of crisis. International Business Research, 11(4), 65.
Miralles-Marcelo, J. L., del Mar Miralles-Quirós, M., & Lisboa, I. (2014). The impact of family control on firm performance: Evidence from Portugal and Spain. Journal of Family Business Strategy, 5(2), 156–168.
Morck, R., Shleifer, A., & Vishny, R. W. (1988). Management ownership and market valuation: An empirical analysis. Journal of Financial Economics, 20, 293–315.
Muñoz-Bullon, F., Sanchez-Bueno, M. J., & Suárez-González, I. (2017). Diversification decisions among family firms: The role of family involvement and generational stage. BRQ Business Research Quarterly, 21(1), 39–52.
Naldi, L., Chirico, F., Kellermanns, F. W., & Campopiano, G. (2015). All in the family? An exploratory study of family member advisors and firm performance. Family Business Review, 28(3), 227–242.
Pazzaglia, F., Mengoli, S., & Sapienza, E. (2013). Earnings quality in acquired and nonacquired family firms: A socioemotional wealth perspective. Family Business Review, 26(4), 374–386.
Prencipe, A., Markarian, G., & Pozza, L. (2008). Earnings management in family firms: Evidence from R&D cost capitalization in Italy. Family Business Review, 21(1), 71–88.
Rangan, S. (1998). Earnings management and the performance of seasoned equity offerings. Journal of Financial Economics, 50(1), 101–122.
Romano, C. A., Tanewsky, G. A., & Smyrnios, K. X. (2000). Capital structure decision making: A model for family business. Journal of Business Venturing, 16, 285–310.
Roosenboom, P., van der Goot, T., & Mertens, G. (2003). Earnings management and initial public offerings: Evidence from the Netherlands. International Journal of Accounting, 38(3), 243–266.
Sciascia, S., Mazzola, P., & Kellermanns, F. W. (2014). Family management and profitability in private family-owned firms: Introducing generational stage and the socioemotional wealth perspective. Journal of Family Business Strategy, 5(2), 131–137.
Shanker, M. C., & Astrachan, J. H. (1996). Myths and realities: Family businesses’ contribution to the US economy–A framework for assessing family business statistics. Family Business Review, 9(2), 107–123.
Shivakumar, L. (2000). Do firms mislead investors by overstating earnings before seasoned equity offerings? Journal of Accounting and Economics, 29(3), 339–371.
Stockmans, A., Lybaert, N., & Voordeckers, W. (2010). Socioemotional wealth and earnings management in private family firms. Family Business Review, 23(3), 280–294.
Teoh, S. H., Welch, I., & Wong, T. J. (1998). Earnings management and the underperformance of seasoned equity offerings. Journal of Financial Economics, 50(1), 63–99.
Vandekerkhof, P., Steijvers, T., Hendriks, W., & Voordeckers, W. (2015). The effect of organizational characteristics on the appointment of nonfamily managers in private family firms: The moderating role of socioemotional wealth. Family Business Review, 28(2), 104–122.
Vieira, E. F. S. (2014). The effect on the performance of listed family and non-family firms. Managerial Finance, 40(3), 234–253.
Villalonga, B., & Amit, R. (2006). How do family ownership, control and management affect firm value? Journal of Financial Economics, 80, 385–417.
Voordeckers, W., Le Breton-Miller, I., & Miller, D. (2014). In search of the best of both worlds: Crafting a finance paper for the family business review. Family Business Review, 27(4), 281–286.
Wiseman, R. M., & Gomez-Mejia, L. R. (1998). A behavioral agency model of managerial risk taking. Academy of Management Review, 23(1), 133–153.
Zellweger, T. M., Kellermanns, F. W., Chrisman, J. J., & Chua, J. H. (2011). Family control and family firm valuation by family CEOs: The importance for intentions for transgenerational control. Organization Science, 23, 851–868.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Gottardo, P., Moisello, A.M. (2019). Introduction. In: Capital Structure, Earnings Management, and Risk of Financial Distress. SpringerBriefs in Business. Springer, Cham. https://doi.org/10.1007/978-3-030-00344-9_1
Download citation
DOI: https://doi.org/10.1007/978-3-030-00344-9_1
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-00343-2
Online ISBN: 978-3-030-00344-9
eBook Packages: Business and ManagementBusiness and Management (R0)