Capital Structure Determinants in Family Firms: An Empirical Analysis in Context of Crisis

• DOI: 10.5539/ibr.v11n4p65
• Publication Date: 2018-02-28T20:50:38Z
• Authors: Stefania Migliori; Fabrizio Maturo; Francesco Paolone
• Keywords: Pecking order theory; Leverage (statistics); Agency cost

The purpose of this paper is to investigate the capital structure family firms in a context crisis. Specifically, it aims discover whether and how determinants their have different impact on firms’ leverage before during recent global financial Considering pecking order theory (POT), trade-off (TOT), agency (AT), study analyzes 1,502 Italian medium comparing pre-crisis (2005-2007) crisis (2008-2010) periods. This research shows that current liquidity, asset structure, costs are most important variables influencing firms' leverage, both Moreover, crisis, increase negative influence short-term highlighting contingencies agency-based effects firm's leverage. Furthermore, our findings highlight more exhaustive understanding can be achieved through combined use theories.