Title
Dividends and family governance practices in private family firmsDividends and family governance practices in private family firms
Author
Faculty/Department
Faculty of Applied Economics
Research group
Accountancy and Finance
Publication type
article
Publication
Dordrecht,
Subject
Economics
Source (journal)
Small business economics: an international journal. - Dordrecht
Volume/pages
44(2015):2, p. 299-314
ISSN
0921-898X
ISI
000348929300005
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Abstract
Intra-familial principalprincipal conflict are a relevant agency problem in privately held family firms. These conflicts of interest commonly occur between active and passive family shareholders, and require remedies different from those that deal with principal-agent conflicts. This article empirically examines whether or not firms use dividends as instruments to cope with conflicts of interest between active and passive family shareholders and how family governance practices moderate this relationship. The results show that the existence of an intra-familial conflict of interest results in a higher propensity to pay dividends and that the use of family governance practices strengthens this relationship. Additionally, the findings suggest that using family governance practices leads to a more efficient dividend policy.
E-info
https://repository.uantwerpen.be/docman/iruaauth/23cfdd/fe98f56c049.pdf
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