While past work finds support for both higher and lower cost of debt among family firms, whether lower shareholder–creditor agency conflicts in family firms translate into greater ex-ante contracting efficiency (i.e., lower debt contract... more
While past work finds support for both higher and lower cost of debt among family firms, whether lower shareholder–creditor agency conflicts in family firms translate into greater ex-ante contracting efficiency (i.e., lower debt contract strictness) remains unexplored. Drawing on a shareholder–creditor agency framework and costly contracting theory, creditors, expecting firm value maximization rather than shareholder value maximization from family firms, may offer less strict debt contracts to increase contracting efficiency. We find in a sample of 716 publicly traded U.S. firms (2001–2010) that family firms have less strict debt contracts, which are even less strict when family firms have higher asset tangibility. Although increases in R&D investments could lead to more pronounced shareholder–creditor agency conflicts, given family firms' preferences for lower risk and growth, debt contract strictness among family firms is not positively associated with higher R&D intensity.
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... panel data ESTHER DEL BRIO, ALBERTO DE MIGUEL and JULIO PINDADO* Dept Administracion y Economia de la Empresa, Universidad de Salamanca, E37007, Spain ... As for divestment announce-ments, Kalra et al. (1994) and Afshar et al. (1992)... more
... panel data ESTHER DEL BRIO, ALBERTO DE MIGUEL and JULIO PINDADO* Dept Administracion y Economia de la Empresa, Universidad de Salamanca, E37007, Spain ... As for divestment announce-ments, Kalra et al. (1994) and Afshar et al. (1992) are good references. ...
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Research Interests: Marketing, Finance, Law, Corporate Governance, Economic Growth, and 15 moreEuropean Union, Applied Economics, Law Enforcement, Commerce, Public investment in R&D, Financial System, Business and Management, United States, Business studies, Research and Development, Investor protection, Business Culture, Cash Flow, Corporate Control, and Econometric Model
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A recently published paper by Gugler and Weigand (2003) addresses the problem of the endogeneity of ownership, but an unresolved question remains. Where does this endogeneity come from? It is shown that the main source of endogeneity is... more
A recently published paper by Gugler and Weigand (2003) addresses the problem of the endogeneity of ownership, but an unresolved question remains. Where does this endogeneity come from? It is shown that the main source of endogeneity is the simultaneity between ownership and value.
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Título: Trade credit, creditor protection and accounting standards: evidence from an international sample Autores: Bastos, Rafael; Pindado, Julio Revista: Revista de Economía financiera, 2009; (17) Página(s): 10-33 ISSN: 16979761 Resumen:... more
Título: Trade credit, creditor protection and accounting standards: evidence from an international sample Autores: Bastos, Rafael; Pindado, Julio Revista: Revista de Economía financiera, 2009; (17) Página(s): 10-33 ISSN: 16979761 Resumen: El crédito comercial es ...
En este trabajo se utiliza un modelo, que relaciona el valor de las acciones de la empresa y el nivel de inversi¢n, para una vez estimado, con la metodolog¡a de datos de panel, contrastar las hip¢tesis de infrainversi¢n y sobreinversi¢n.... more
En este trabajo se utiliza un modelo, que relaciona el valor de las acciones de la empresa y el nivel de inversi¢n, para una vez estimado, con la metodolog¡a de datos de panel, contrastar las hip¢tesis de infrainversi¢n y sobreinversi¢n. Los resultados obtenidos indican que la relaci¢n entre valor de las acciones de la empresa e inversi¢n es cuadr tica,
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Family control and the investment-cash flow sensitivity:
Trade credit is broadly used by firms around the world. Nevertheless, its use by firms in different locations is not homogeneous. A possible explanation for this are heterogeneous levels of creditor protection or quality in accounting... more
Trade credit is broadly used by firms around the world. Nevertheless, its use by firms in different locations is not homogeneous. A possible explanation for this are heterogeneous levels of creditor protection or quality in accounting systems among the different countries. Both features may influence the borrowing risk involved in selling goods on credit. Using a dataset containing firms from 13 countries, we explain trade credit policy based on the agency theory, according to which it is a result of a trade-off between the moral hazard and the adverse selection phenomena. The results from the estimation show a positive effect of adverse selection on the trade credit extended and a negative effect of moral hazard on the trade credit extended. Furthermore, our analysis shows that the level of creditor protection and the accounting system mitigate the negative influence of moral hazard on trade credit.
This paper analyses the influence of financial decisions on corporate ownership structure. We derive two models in line with financial theory, which have then been estimated by using a sample of Spanish companies. The panel data... more
This paper analyses the influence of financial decisions on corporate ownership structure. We derive two models in line with financial theory, which have then been estimated by using a sample of Spanish companies. The panel data methodology and the estimation by the Generalized Method of Moments allow us to eliminate the unobservable heterogeneity and to control for the endogeneity problem.
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Dada la importancia de las empresas familiares en todo el mundo, nuestro principal objetivo en este trabajo es investigar la relación entre concentración de propiedad y valor de mercado en elcaso particular de las compañías familiares.... more
Dada la importancia de las empresas familiares en todo el mundo, nuestro principal objetivo en este trabajo es investigar la relación entre concentración de propiedad y valor de mercado en elcaso particular de las compañías familiares. Además, estudiamos si las empresas familiares obtienen mejores resultados que las no familiares. Para lograr este objetivo, adoptamos un enfoque de gobierno corporativo. La estimación de nuestros modelos mediante el método generalizado de los momentos proporciona nueva evidencia empírica. Nuestros resultados revelan que la propiedad familiar influye positivamente en el valor empresarial. No obstante, cuando laconcentración de propiedad en manos de la familia es demasiado elevada, el valor de la compañía disminuye; dando lugar a un relación no lineal entre concentración de propiedad familiar y valor de mercado. Finalmente, demostramos que las empresas familiares obtienen mejores resultados que las no familiares, incluso cuando se tiene en cuenta la men...
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ABSTRACT This study investigates the relation between family control and corporate capital structure considering the dynamic nature of the debt policy and the ownership structure of family firms. Our results show that the sensitivity of... more
ABSTRACT This study investigates the relation between family control and corporate capital structure considering the dynamic nature of the debt policy and the ownership structure of family firms. Our results show that the sensitivity of debt to fluctuations in cash flow is less pronounced in family firms and highlight that family control increases the speed of adjustment toward target debt. Four dimensions of the family business model explain these results: deviations of voting from cash flow rights, the presence of a second blockholder in the company, involvement of family members in management and the generation in charge of the business. The weaker negative impact of cash flow on debt is driven by family firms with no control-enhancing mechanisms, companies with active family participation in management and family businesses that are still controlled by the first generation. By contrast, the more severe agency conflicts between owners and creditors in family firms with a second blockholder lead to more pronounced pecking order behaviour. Furthermore, the higher flexibility in corporate decision-making of family firms managed by the family and under the influence of the first generation explains that family companies are able to rebalance their capital structure faster.This article is protected by copyright. All rights reserved
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This paper provides evidence on how the diversification strategy impact on the firm value. Furthermore the paper studies the effect of the levels and types of diversification on the firm value. To achieve this aim, we propose a value... more
This paper provides evidence on how the diversification strategy impact on the firm value. Furthermore the paper studies the effect of the levels and types of diversification on the firm value. To achieve this aim, we propose a value model that incorporates the level and type of diversification. The estimation of the model by using the Generalized Method of Moments
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ABSTRACT Given the complexity of the family business phenomenon, empirical research has still reached no consensus on whether family control is beneficial or detrimental to firm performance. To shed new light on this issue, this paper... more
ABSTRACT Given the complexity of the family business phenomenon, empirical research has still reached no consensus on whether family control is beneficial or detrimental to firm performance. To shed new light on this issue, this paper covers more than 350 articles published in 37 top finance and management journals. More specifically, it provides an in-depth analysis of the family business governance system in three steps. First, after examining the various family business definitions and measures of performance used in empirical research, the authors discuss the findings on the direct effect of family control on performance in different geographical regions. Second, the authors pay special attention to the choice of ownership structures by business families and analyse how family owners influence strategic decisions faced by their corporations, including the succession process. Finally, the authors explore the interaction of family control with other governance devices to gain a better understanding of family firms' corporate decision-making and performance. The holistic approach highlights the need to contemplate the multiple relations that exist among the various governance dimensions of family firms to explain their unique performance. In addition to enhancing understanding of family business conduct, the authors emphasize the need to go beyond the borders of the family firm to identify its external antecedents and consequences. By integrating the finance and management perspectives and analysing the theoretical frameworks and methodologies used in these disciplines, the review highlights the need for interdisciplinary collaboration to advance family business research and thus to consolidate it as a distinctive academic field.
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... INTERNATIONAL DATA Mónica H. Maestroa, Alberto de Miguela, Julio Pindadoa* ... e-mail addresses: monicahm@usal.es; amiguel@usal.es; pindado@usal.es. * Corresponding author:Julio Pindado, Department Administración y Economía de la... more
... INTERNATIONAL DATA Mónica H. Maestroa, Alberto de Miguela, Julio Pindadoa* ... e-mail addresses: monicahm@usal.es; amiguel@usal.es; pindado@usal.es. * Corresponding author:Julio Pindado, Department Administración y Economía de la Empresa, Universidad de ...
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ABSTRACT Corporate Governance has become a relevant issue in the Financial Literature. However, teaching on Corporate Finance is not keeping up with this educational change, and textbooks on Corporate Finance remain quite standard in... more
ABSTRACT Corporate Governance has become a relevant issue in the Financial Literature. However, teaching on Corporate Finance is not keeping up with this educational change, and textbooks on Corporate Finance remain quite standard in their contents. Only a few exceptions incorporate Corporate Governance into the syllabus on undergraduate education and, as far as we know, none of them goes further into its implications for Corporate Finance. This paper discusses what the research on Corporate Governance has to offer classroom teachers, and recommends the incorporation of Corporate Governance issues and their implications for Corporate Finance in textbooks.
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... Review of Financial Studies. 5: 437-470. Hubbard, R., A. Kashyap and T. Whited. 1995. ... Journal of Banking & Finance 25: 1857-1895. Kadapakkam, P., P. Kumar and L. Riddick. 1998. The Impact of Cash Flows and Firm Size on... more
... Review of Financial Studies. 5: 437-470. Hubbard, R., A. Kashyap and T. Whited. 1995. ... Journal of Banking & Finance 25: 1857-1895. Kadapakkam, P., P. Kumar and L. Riddick. 1998. The Impact of Cash Flows and Firm Size on Investment: The International Evidence. ...
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Research Interests: Investment and Leverage
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Research Interests: Panel Data and Investment
... especial atención, a sabiendas de que el objetivo básico de los mecanismos de control es proporcionar un sistema de alarma que ... España se caracteriza por una elevada concentración de la propiedad y el escaso desarrollo del mercado... more
... especial atención, a sabiendas de que el objetivo básico de los mecanismos de control es proporcionar un sistema de alarma que ... España se caracteriza por una elevada concentración de la propiedad y el escaso desarrollo del mercado de control empresarial. ...
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