Family firms and financing decisions: characteristics and decisions of management bodies

Abstract

Family firms play a crucial role in both national and international level. Their nature and distinguishing features influence the different areas of the company. Financing is one of these areas, which is one of the keys for firm survival and success. Financing decisions are usually taken in three decision-making bodies: the Board of Directors, the Senior Management Group and the Chief Executive Office. These decisions will be impacted by the family, in a different way in each body, which will condition that funding decisions. This article examines the influence of the family in financial decision-making, examining its impact in the different decision-making bodies and comparing with the case of non-family firms.