What drives bank financing in family firms? A systematic review and research agenda

Abstract

Given the significant role of family firms worldwide, their access to bank financing to fund growth and operations is crucial for the global economy. Through a systematic literature review analyzing 126 empirical articles published between 1998 and 2023, this study focuses on the determinants of bank financing use on the one hand and bank financing conditions on the other hand. In this article, we disentangle the diversified and evolving research domain of family business bank financing, uncover what might explain the conflicting findings in extant research, and discuss how scholars could move this field forward. Guided by behavioral theories, we present promising directions for future research by identifying gaps considering the role of the business family in the decision-making process regarding bank finance use and conditions.