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La structure financière des entreprises familiales : une analyse fondée sur la théorie du Pecking Order
[The financial structure of family businesses: An analysis based on the Pecking Order theory]

Author

Listed:
  • Chibani Ltaief, Faten
  • Henchiri, jamel E.

Abstract

This paper aims to analyze whether pecking order theory has a relevant application for family businesses. For this purpose, we compared two series of family and non-family unlisted firms in the French context. Our results indicate that generally the financial behavior of family businesses differs from non-family enterprises. Family business prefer internal financing to external financing and, in the case of external financing, debt is preferred to the capital increase. The Pecking order theory is more appropriate for family businesses than for non-family businesses.

Suggested Citation

  • Chibani Ltaief, Faten & Henchiri, jamel E., 2016. "La structure financière des entreprises familiales : une analyse fondée sur la théorie du Pecking Order [The financial structure of family businesses: An analysis based on the Pecking Order theory]," MPRA Paper 76784, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:76784
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    References listed on IDEAS

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    2. McConaughy, Daniel L. & Walker, Michael C. & Henderson, Glenn Jr. & Mishra, Chandra S., 1998. "Founding family controlled firms: Efficiency and value," Review of Financial Economics, Elsevier, vol. 7(1), pages 1-19.
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    7. Stewart C. Myers & Nicholas S. Majluf, 1984. "Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have," NBER Working Papers 1396, National Bureau of Economic Research, Inc.
    8. Eugene F. Fama, 2002. "Testing Trade-Off and Pecking Order Predictions About Dividends and Debt," The Review of Financial Studies, Society for Financial Studies, vol. 15(1), pages 1-33, March.
    9. Rajan, Raghuram G & Zingales, Luigi, 1995. "What Do We Know about Capital Structure? Some Evidence from International Data," Journal of Finance, American Finance Association, vol. 50(5), pages 1421-1460, December.
    10. Romano, Claudio A. & Tanewski, George A. & Smyrnios, Kosmas X., 2001. "Capital structure decision making: A model for family business," Journal of Business Venturing, Elsevier, vol. 16(3), pages 285-310, May.
    11. William S. Schulze & Michael H. Lubatkin & Richard N. Dino & Ann K. Buchholtz, 2001. "Agency Relationships in Family Firms: Theory and Evidence," Organization Science, INFORMS, vol. 12(2), pages 99-116, April.
    12. Ronald C. Anderson & David M. Reeb, 2003. "Founding‐Family Ownership and Firm Performance: Evidence from the S&P 500," Journal of Finance, American Finance Association, vol. 58(3), pages 1301-1328, June.
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    Cited by:

    1. ABDEL AZIZ ADAMA & Jules Roger FEUDJO, 2019. "L' effet famille : une explication du differentiel d’endettements des entreprises familiales et non familiales," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 10(1), pages 2-20, June.
    2. Wamba Berthelo KUEDA & Kouakep Kouakep Olive Stéphanie & Kountelejouo Kountelejouo Laguarta Carine & Nongni Nongni Clodiane Léa & Kakti Kakti Ngueumeleu Gisèle, 2020. "The strategic decision-making process in family businesses in Cameroon," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 11(2), pages 242-259, December.
    3. ABDEL AZIZ ADAMA & Jules Roger FEUDJO, 2019. "effet famille : une explication du differentiel d’endettements des entreprises familiales et non familiales," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 10(1), pages 2-20, June.
    4. Romain FOGO PAWO, 2020. "les déterminants objectifs de l’endettement en contexte de rationnement du crédit," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 11(2), pages 280-292, December.
    5. Romain FOGO PAWO, 2020. "déterminants objectifs de l’endettement en contexte de rationnement du crédit," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 11(2), pages 280-292, December.
    6. Joseph Herman TIONA WAMBA & Thomas AMOUGOU OYONO & Frank Éric TCHANOU, 2023. "Spécificité des actifs et choix d'un mode de financement des entreprises manufacturières," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 14(1), pages 46-63, June.
    7. Estelle NOUDOHOUENOU & Karima SYLLA DOUCOURE, 2023. "Facteurs de contingence et choix des outils de contrôle de gestion dans les petites et moyennes entreprises," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 14(1), pages 2-15, June.
    8. Wamba Berthelo KUEDA & Kouakep Kouakep Olive Stéphanie & Kountelejouo Kountelejouo Laguarta Carine & Nongni Nongni Clodiane Léa & Kakti Kakti Ngueumeleu Gisèle, 2020. "strategic decision-making process in family businesses in Cameroon," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 11(2), pages 242-259, December.

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    More about this item

    Keywords

    Family business - pecking order theory - internal financing gap - france;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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