TY - JOUR
T1 - Investment decisions of family firms in the three largest euro countries: the role of the financial crisis
AU - Quarato, Fabio
AU - Cambrea, Domenico Rocco
AU - Calabrò, Andrea
PY - 2021
Y1 - 2021
N2 - This study aims to investigate the impact of family ownership on the investment-cash flow sensitivity relationship. Our main hypotheses are tested through fixed effects regression analysis on panel data of French, German, and Italian listed firms over the 2007-2015 timeframe. The main findings suggest that family ownership is more likely to reduce the investment-cash flow sensitivity, suggesting more family firms’ more efficient investment behaviors. Moreover, during the financial crisis, family firms are particularly able to collect external funds to undertake investment projects, even if the internally generated cash-flow is not adequate to sustain investment policies.
AB - This study aims to investigate the impact of family ownership on the investment-cash flow sensitivity relationship. Our main hypotheses are tested through fixed effects regression analysis on panel data of French, German, and Italian listed firms over the 2007-2015 timeframe. The main findings suggest that family ownership is more likely to reduce the investment-cash flow sensitivity, suggesting more family firms’ more efficient investment behaviors. Moreover, during the financial crisis, family firms are particularly able to collect external funds to undertake investment projects, even if the internally generated cash-flow is not adequate to sustain investment policies.
KW - investment-cash flow sensitivity relationship
KW - investment-cash flow sensitivity relationship
UR - http://hdl.handle.net/10807/183285
U2 - 10.1016/j.frl.2021.101980
DO - 10.1016/j.frl.2021.101980
M3 - Article
SN - 1544-6123
SP - N/A-N/A
JO - Finance Research Letters
JF - Finance Research Letters
ER -