Proceedings of 2nd International Conference on Business, Management and Economics
Family firms and leverage Empirical evidence from South East Asia
Hong Nhung Le
We investigate the impact of family ownership on leverage in South East Asia. East Asia provides ideal for studying the impact of family ownership status on leverage due to the predominant of family business form. We find that family firms use more debt than non-family firms. In addition, family firms with family CEOs are more aggressive in using debt than family firms with professional CEOs and non-family firms. Our results are robust to alternative estimation techniques and measurement of leverage. These findings contribute to understanding the financing behaviors among family-controlled firms in South East Asia.
Keywords: Family firms, capital structure, South East Asia.