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http://hdl.handle.net/1942/40827
Title: | Investigating performance implications of intra-family ownership successions: Equity transfers with versus without debt creation | Authors: | JANSSEN, Ellen VANDEMAELE, Sigrid VOORDECKERS, Wim VANCAUTEREN, Mark |
Issue Date: | 2023 | Publisher: | WILEY | Source: | Accounting and Finance, | Status: | Early view | Abstract: | We relate two routes of intra-family ownership succession (i.e., succession financed with versus without debt) to post-succession financial performance. Investigating a sample of 203 privately-held family businesses, our results show that the succession-induced performance paths of the two subgroups are significantly different. When debt is used to fund the intra-family share transfer, financial performance significantly increases in the post-succession period. This phenomenon is absent when no debt is used to fund succession. We attribute the performance gap to a governance device characterising the debt-financed succession route: debt creation at succession leads to firm-level efficiency gains. | Notes: | Vandemaele, S (corresponding author), Hasselt Univ, Res Ctr Entrepreneurship & Family Firms, Agoralaan Gebouw D, B-3590 Diepenbeek, Belgium. sigrid.vandemaele@uhasselt.be |
Keywords: | family firms;financial debt;financial performance;governance;ownership succession | Document URI: | http://hdl.handle.net/1942/40827 | ISSN: | 0810-5391 | e-ISSN: | 1467-629X | DOI: | 10.1111/acfi.13157 | ISI #: | 001052099900001 | Rights: | 2023 Accounting and Finance Association of Australia and New Zealand. Free access | Category: | A1 | Type: | Journal Contribution |
Appears in Collections: | Research publications |
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Investigating performance implications of intra‐family ownership successions_ Equity transfers with versus without debt creation.pdf Restricted Access | Early view | 1.21 MB | Adobe PDF | View/Open Request a copy |
Investigating performance implications of intra-family ownership successions.pdf Until 2025-09-30 | Peer-reviewed author version | 487.16 kB | Adobe PDF | View/Open Request a copy |
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