Short-term borrowing for long-term projects : are family businesses more susceptible to irrational financing choices?


Peters, Bettina ; Westerheide, Peter


[img]
Preview
PDF
dp11006.pdf - Published

Download (533kB)

URL: http://ub-madoc.bib.uni-mannheim.de/3129
URN: urn:nbn:de:bsz:180-madoc-31291
Document Type: Working paper
Year of publication: 2011
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: M14 G31 G32 ,
Subject headings (SWD): Familienbetrieb , Kredit , Finanzierung , Finanzlage
Keywords (English): corporate financing , innovation , family businesses , financing restrictions
Abstract: There are noticeable differences between the roles that various forms of credit financing play in family businesses and in other businesses. Family businesses take out more often bank loans specifically to finance investments and innovations, and they particularly often resort to the short-term and relatively expensive option of an overdraft. How can we explain these differences in financing choices? Do family businesses tend to use shorter-term, more expensive sources of financing because they face more restrictions than other or are there other motives such as financial independence at play? Our econometric approach to these issues is to study the financing behaviour and creditworthiness. For both of these aspects, we compare family businesses with non-family-run businesses that otherwise have the same characteristics. Our results do not confirm that family businesses are faced by stronger financial constraints but they indicate that family firms are prepared to accept higher financing costs in order to preserve their financial independence.
Additional information:

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




+ Citation Example and Export

Peters, Bettina ; Westerheide, Peter (2011) Short-term borrowing for long-term projects : are family businesses more susceptible to irrational financing choices? Open Access [Working paper]
[img]
Preview


+ Search Authors in

+ Download Statistics

Downloads per month over past year

View more statistics



You have found an error? Please let us know about your desired correction here: E-Mail


Actions (login required)

Show item Show item