Template-Type: ReDIF-Paper 1.0
Author-Name: Valentina Peruzzi 
Author-X-Name-First: Valentina
Author-X-Name-Last: Peruzzi
Author-Email: v.peruzzi@univpm.it
Author-Workplace-Name: Università Politecnica delle Marche
Title: Does family ownership structure affect investment-cash flow sensitivity? Evidence from Italian SMEs 

Abstract: The aim of this paper is to investigate whether family control, family management and family ownership concentration affect the investment-cash flow sensitivity of small- and medium-sized enterprises. By analysing a sample of Italian SMEs for the period 2004-2013, I find that family-owned businesses are significantly associated with higher investment-cash flow dependence. This relation, however, is found to be driven by two distinct factors: (i) the presence of a highly concentrated family ownership (ownership concentration channel) and (ii) the active involvement of the family in the business (family management channel). 
Length: 38 pages
Creation-Date: 2017-01
Publication-Status: 
File-URL: https://repec.lumsa.it/wp/wpC16.pdf
File-Format: Application/pdf
Number: wpC16
Classification-JEL: G31, G32
Keywords:  family firms, investment-cash flow sensitivity, financing constraints, family CEO, ownership concentration. 
Handle: RePEc:lsa:wpaper:wpC16