Do family firms pay less for external funding?

Ali, M., Miglani, S., Dang, M., Puwanenthiren, P. and Mieszko, M. 2022. Do family firms pay less for external funding? Australian Journal of Management. 47 (2), pp. 225-250. https://doi.org/10.1177/03128962211018241

TitleDo family firms pay less for external funding?
TypeJournal article
AuthorsAli, M., Miglani, S., Dang, M., Puwanenthiren, P. and Mieszko, M.
Abstract

We examine the impact of family’s presence on the cost of raising external funds by family-run enterprises. Using a sample of Australian publicly listed firms, we find a significantly negative relation between cost of newly raised capital and family presence. Moreover, we show that this relationship varies with the quality of corporate governance and the quality of firm’s information environment. Further, we conduct several robustness checks and consistently find that our main results remain unchanged. Overall, our evidence suggests that family firms have easier access to external financing fostered by family involvement in the ownership and control.

KeywordsAustralian family firms, corporate governance, cost of capital, financial analysts, institutional ownership
JournalAustralian Journal of Management
Journal citation47 (2), pp. 225-250
ISSN0312-8962
1327-2020
Year2022
PublisherSage
Accepted author manuscript
Digital Object Identifier (DOI)https://doi.org/10.1177/03128962211018241
Web address (URL)https://journals.sagepub.com/doi/10.1177/03128962211018241
Publication dates
Published19 Jul 2021
Published in print2022

Related outputs

Audit Quality and Seasoned Equity Offerings Methods  
Dang, M., Puwanenthiren, P., Truong, C., Henry, D. and Vo, X.V. 2022. Audit Quality and Seasoned Equity Offerings Methods  . International Review of Financial Analysis. 83 102227. https://doi.org/10.1016/j.irfa.2022.102227

Strategic archetypes, credit ratings, and cost of debt  
Dang, M., Puwanenthiren, P., Jones, E., Nguyen, T.Q., Vo, X.V. and Nadarajah, S. 2022. Strategic archetypes, credit ratings, and cost of debt  . Economic Modelling. 114 105917. https://doi.org/10.1016/j.econmod.2022.105917

Does managerial tone matter for stock liquidity? Evidence from textual disclosures  
Dang, M., Puwanenthiren, P., Henry, D., Mieszko, M. and Toan, N.M. 2022. Does managerial tone matter for stock liquidity? Evidence from textual disclosures  . Finance Research Letters. 48 102917. https://doi.org/10.1016/j.frl.2022.102917

Country uncertainty, power distance, and payment methods in acquisitions
Dang, M., Hoang, Viet Anh, Jones, Edward, Henry, Darren, Le, Phuong Uyen and Puwanenthiren, Premkanth 2021. Country uncertainty, power distance, and payment methods in acquisitions. The European Journal of Finance. Advanced online publication. https://doi.org/10.1080/1351847x.2021.1971731

Policy uncertainty and seasoned equity offerings methods
Dang, M., Puwanenthiren, P., Thai, H., Mazur, M., Jones, E. and Xuan Vinh, V. 2021. Policy uncertainty and seasoned equity offerings methods. International Review of Financial Analysis. 77 101830. https://doi.org/10.1016/j.irfa.2021.101830

Global Policy Uncertainty and Cross-Border Acquisitions
Dang, M., Nguy, N.V., Mazuren, M., Puwanenthiren, P. and Nguyen, N.T. 2021. Global Policy Uncertainty and Cross-Border Acquisitions. The Quarterly Review of Economics and Finance. 80, pp. 224-235. https://doi.org/10.1016/j.qref.2021.01.020

The impact of audit quality in rights offerings
Balachandran, B., Faff, R., Nguyen, L.H.G. and Puwanenthiren, P. 2020. The impact of audit quality in rights offerings. Accounting & Finance. 60 (3), pp. 2007-2037. https://doi.org/10.1111/acfi.12429

Does Managerial ability matter for the choice of Seasoned Equity offerings?
Puwanenthiren, P., Dang, M., Henry, D., Puwanenthiren, P. and Al Mamun, M. 2019. Does Managerial ability matter for the choice of Seasoned Equity offerings? North American Journal of Economics and Finance. 47, pp. 442-460. https://doi.org/10.1016/j.najef.2018.06.002

Permalink - https://westminsterresearch.westminster.ac.uk/item/v628y/do-family-firms-pay-less-for-external-funding


Share this

Usage statistics

29 total views
47 total downloads
These values cover views and downloads from WestminsterResearch and are for the period from September 2nd 2018, when this repository was created.