Does family ownership always reduce default risk?
Fecha
2021Versión
Acceso abierto / Sarbide irekia
Tipo
Artículo / Artikulua
Versión
Versión aceptada / Onetsi den bertsioa
Identificador del proyecto
ES/1PE/ECO2016-77631-R
Impacto
|
10.1111/acfi.12725
Resumen
This paper analyses the effect of family ownership on the outcome of the firm’s risk‐taking activities, measured by the company’s default risk. We show that family ownership reduces the probability of default, which is proxied by the Black–Scholes–Merton (BSM) model. Our study goes further than the initial approach by taking into account certain factors conditioning the aforementioned relationshi ...
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This paper analyses the effect of family ownership on the outcome of the firm’s risk‐taking activities, measured by the company’s default risk. We show that family ownership reduces the probability of default, which is proxied by the Black–Scholes–Merton (BSM) model. Our study goes further than the initial approach by taking into account certain factors conditioning the aforementioned relationship. We find that the expected negative relationship between family ownership and default risk is modified when there is a significant participation of institutional investors, whose positive moderating influence intensifies if they are stable and long‐term oriented and/or during adverse financial circumstances. [--]
Materias
Black–Scholes–Merton model,
Default risk,
Economic downturn,
Family ownership,
Institutional investors
Editor
Wiley Accounting and Finance Association of Australia and New Zealand
Publicado en
Account Finance, 2021
Departamento
Universidad Pública de Navarra. Departamento de Gestión de Empresas /
Nafarroako Unibertsitate Publikoa. Enpresen Kudeaketa Saila /
Universidad Pública de Navarra/Nafarroako Unibertsitate Publikoa. Institute for Advanced Research in Business and Economics - INARBE
Versión del editor
Entidades Financiadoras
Spanish Ministry of Science and Innovation (PID2019‐104304GB‐I00/AEI/10.13039/501100011033), the Spanish Ministry of Economy and Competitiveness (ECO2016‐77631‐R) and the Ramón Areces Foundation.