Publication:
Private family firms, generations and bank debt

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Authors
Díaz-Díaz, Nieves Lidia ; García-Teurel, Pedro J. ; Martínez-Solano, Pedro
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Publisher
Wiley
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Description
©2022 The Authors. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/. This document is the Published version of a Published Work that appeared in final form in Accounting & Finance. To access the final edited and published work see https://doi.org/10.1111/acfi.13013
Abstract
This paper focuses on the use of bank debt by private family firms and whether it is higher for the first generations of family businesses than for their descendants and subsequent generations. We use a unique hand-collected data set of 4,041 private Spanish firms for the years 2004 to 2013. We find statistical evidence that family-controlled firms make greater use of bank credit. Moreover, we show that first-generation family firms acquire more bank debt than those of second and subsequent generations. Furthermore, during financial crises, family-controlled firms were subjected to less rationing, with increased bank financing for first generations.
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