Pay-out policies in founding family firms

Isakov, Dusan (University of Fribourg, Boulevard de Pérolles 90, CH-1700 Fribourg, Switzerland) ; Weisskopf, Jean-Philippe (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland)

This article analyses founding family influence on pay-out policies for Swiss listed firms over the period 2003–2010. We hypothesise that family firms have different incentives and characteristics that affect pay-out decisions and propose three possible explanations: agency theory, reputation building and family income needs. Our results show that founding family firms display significantly higher dividend pay-outs relative to companies with other ownership structures. We also examine specific family characteristics and document that a family's stake, active involvement and generation play an important role in determining pay-out policies. Our findings appear to be consistent with the family income hypothesis and to some extent with reputational concerns.


Keywords:
Article Type:
scientifique
Faculty:
Economie et Services
School:
EHL
Subject(s):
Economie/gestion
Date:
2015
Published in:
Journal of corporate finance
Numeration (vol. no.):
August 2015, vol. 33, pp. 330–344
DOI:
ISSN:
0929-1199
Appears in Collection:

Note: The status of this file is: restricted


 Record created 2015-11-25, last modified 2018-12-20

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