THE DEBT MATURITY STRUCTURE, AGENCY CONFLICTS AND SOCIOEMOTIONAL WEALTH OF FAMILY FIRMS

Abstract

This study aims to the impact of the distinctive agency and socioemotional features of family firms on their debt maturity choices using a literature analysis of this topic, still substantially unexplored. Therefore, this study examines the relationships between owners and managers, major shareholders and minority shareholders, shareholders controlling the family and outsiders, owners and creditors. The analysis shows that the tendency of family companies using long-term debt depends on the generation of family business leaders, controlling shareholders, motivations for minority shareholders, outsiders and family involvement in the company. The impacts of macro factors, combined with the company's unique characteristics, are related to representative contradictions and family involvement in the firm, family debt decisions, compared to the decision of the non-family company. Due to the importance of widespread presences and widespread activities of family companies, empirical results can help governments adopt specific policies to better support family companies in terms of economic and non-economic aspects.

Keywords: Family firms; Non-family firms; Agency conflicts; Socioemotional wealth; Debt maturity.