Skip to main content
main-content
Top

Hint

Swipe to navigate through the articles of this issue

17-02-2021

Influence of family-centered goals on dividend policy in family firms: A socioemotional wealth approach

Authors: María Belda-Ruiz, Gregorio Sánchez-Marín, J. Samuel Baixauli-Soler

Published in: International Entrepreneurship and Management Journal

Login to get access
share
SHARE

Abstract

Socioemotional wealth (SEW) preservation is likely to be a key determinant for family firms when shaping their dividend policy. This paper analyzes how family-centered goals reflected by SEW can influence dividend policy in private family firms and explores how family involvement in management, generational stage, and firm hazard might moderate these relationships. Results indicate a negative association between SEW preservation and both the likelihood of giving dividends and the amount of dividend paid. This negative relationship is stronger when the CEO is a family member, in early generational stages and when the firm faces greater performance hazard. The amount of dividend paid is also lower when there are family members in other top management positions apart from the CEO. The evidence provided thus suggests that the existing heterogeneity in dividend policy in privately held family firms is strongly driven by differences in SEW priorities.
Footnotes
1
First, a Cronbach Alpha of 0.880, reliability coefficient RHO of 0.905, and composite reliability (CR) of 0.941 provide support for reliability (Fornell and Larcker 1981). Second, as regards convergent validity, the index of average variance extracted (AVE) for family continuity is 0.666, and 0.534 for family enrichment, exceeding the 0.50 cutoff criteria (Hair et al. 2006). Third, discriminant validity is verified since the square root of AVE of each first-order factor (0.816 and 0.737 for the first and second factor, respectively) is higher than the correlation among these two factors (0.694). Furthermore, as shown in Table 2, CFA results suggest that both the second-order factor and the correlated two-factor models fit the data significantly better than the alternative one-factor model (all eight items are combined).
 
2
Following Vandemaele and Vancauteren (2015), the empirical models do not consider profitability measures (such as return on assets, ROA, or return on equity, ROE), in our case, due to potential multicollinearity problems with the existing control variables.
 
Literature
go back to reference Arregle, J. L., Hébert, L., & Beamish, P. W. (2006). Mode of international entry: The advantages of multilevel methods. Management International Review, 46(5), 597–618. CrossRef Arregle, J. L., Hébert, L., & Beamish, P. W. (2006). Mode of international entry: The advantages of multilevel methods. Management International Review, 46(5), 597–618. CrossRef
go back to reference Arzubiaga, U., Iturralde, T., Maseda, A., & Kotlar, J. (2018). Entrepreneurial orientation and firm performance in family SMEs: The moderating effects of family, women, and strategic involvement in the board of directors. International Entrepreneurship and Management Journal, 14(1), 217–244. CrossRef Arzubiaga, U., Iturralde, T., Maseda, A., & Kotlar, J. (2018). Entrepreneurial orientation and firm performance in family SMEs: The moderating effects of family, women, and strategic involvement in the board of directors. International Entrepreneurship and Management Journal, 14(1), 217–244. CrossRef
go back to reference Attig, N., Boubakri, N., El Ghould, S., & Guedhami, O. (2016). The global financial crisis, family control, and dividend policy. Financial Management, 45(2), 291–313. CrossRef Attig, N., Boubakri, N., El Ghould, S., & Guedhami, O. (2016). The global financial crisis, family control, and dividend policy. Financial Management, 45(2), 291–313. CrossRef
go back to reference Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16, 74–94. CrossRef Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16, 74–94. CrossRef
go back to reference Baixauli-Soler, J. S., Belda-Ruiz, M., & Sánchez-Marín, G. (2021). Socioemotional wealth and financial decisions in private family SMEs. Journal of Business Research, 123, 657–668. CrossRef Baixauli-Soler, J. S., Belda-Ruiz, M., & Sánchez-Marín, G. (2021). Socioemotional wealth and financial decisions in private family SMEs. Journal of Business Research, 123, 657–668. CrossRef
go back to reference Beck, L., Janssens, W., Debruyne, M., & Lommelen, T. (2011). A study of the relationships between generation, market orientation, and innovation in family firms. Family Business Review, 24(3), 252–272. CrossRef Beck, L., Janssens, W., Debruyne, M., & Lommelen, T. (2011). A study of the relationships between generation, market orientation, and innovation in family firms. Family Business Review, 24(3), 252–272. CrossRef
go back to reference Bentler, P. M. (2006). EQS 6 structural equations program manual. Encino: Multivariate Software. Bentler, P. M. (2006). EQS 6 structural equations program manual. Encino: Multivariate Software.
go back to reference Berrone, P., Cruz, C., Gomez-Mejia, L. R., & Larraza-Kintana, M. (2010). Socioemotional wealth and corporate responses to institutional pressures: Do family-controlled firms pollute less? Administrative Science Quarterly, 55(1), 82–113. CrossRef Berrone, P., Cruz, C., Gomez-Mejia, L. R., & Larraza-Kintana, M. (2010). Socioemotional wealth and corporate responses to institutional pressures: Do family-controlled firms pollute less? Administrative Science Quarterly, 55(1), 82–113. CrossRef
go back to reference Berrone, P., Cruz, C., & Gomez-Mejia, L. R. (2012). Socioemotional wealth in family firms: Theoretical dimensions, assessment approaches, and agenda for future research. Family Business Review, 25(3), 258–279. CrossRef Berrone, P., Cruz, C., & Gomez-Mejia, L. R. (2012). Socioemotional wealth in family firms: Theoretical dimensions, assessment approaches, and agenda for future research. Family Business Review, 25(3), 258–279. CrossRef
go back to reference Blanco-Mazagatos, V., Quevedo-Puente, D., & Castrillo, L. A. (2007). The trade-off between financial resources and agency costs in the family business: An exploratory study. Family Business Review, 20(3), 199–213. CrossRef Blanco-Mazagatos, V., Quevedo-Puente, D., & Castrillo, L. A. (2007). The trade-off between financial resources and agency costs in the family business: An exploratory study. Family Business Review, 20(3), 199–213. CrossRef
go back to reference Brannon, D. L., & Edmond, V. P. (2016). A socioemotional wealth perspective in small family firms. Academy of Entrepreneurship Journal, 22(1), 51–64. Brannon, D. L., & Edmond, V. P. (2016). A socioemotional wealth perspective in small family firms. Academy of Entrepreneurship Journal, 22(1), 51–64.
go back to reference Byrne, B. M. (2006). Structural equation modeling with EQS: Basic concepts, applications, and programming. Mahwah: Lawrence Erlbaum Associates. Byrne, B. M. (2006). Structural equation modeling with EQS: Basic concepts, applications, and programming. Mahwah: Lawrence Erlbaum Associates.
go back to reference Calabrò, A., Cameran, M., Campa, D., & Pettinicchio, A. (2020). Financial reporting in family firms: A socioemotional wealth approach toward information quality. Journal of Small Business Management, 1–35 In Press. Calabrò, A., Cameran, M., Campa, D., & Pettinicchio, A. (2020). Financial reporting in family firms: A socioemotional wealth approach toward information quality. Journal of Small Business Management, 1–35 In Press.
go back to reference Cannella, A. A., Jones, C. D., & Withers, M. C. (2015). Family-versus lone-founder-controlled public corporations: Social identity theory and boards of directors. Academy of Management Journal, 58(2), 436–459. CrossRef Cannella, A. A., Jones, C. D., & Withers, M. C. (2015). Family-versus lone-founder-controlled public corporations: Social identity theory and boards of directors. Academy of Management Journal, 58(2), 436–459. CrossRef
go back to reference Carney, M., & Gedajlovic, E. (2002). The coupling of ownership and control and the allocation of financial resources: Evidence from Hong Kong. Journal of Management Studies, 39(1), 123–146. CrossRef Carney, M., & Gedajlovic, E. (2002). The coupling of ownership and control and the allocation of financial resources: Evidence from Hong Kong. Journal of Management Studies, 39(1), 123–146. CrossRef
go back to reference Casillas, J. C., López, M. C., Meroño, A., Pons, A., & Baiges, R. (2015). La Empresa Familiar en España. Madrid: Instituto de Empresa Familiar. Casillas, J. C., López, M. C., Meroño, A., Pons, A., & Baiges, R. (2015). La Empresa Familiar en España. Madrid: Instituto de Empresa Familiar.
go back to reference Chrisman, J. J., & Patel, P. C. (2012). Variations in R&D investments of family and nonfamily firms: Behavioral agency and myopic loss aversion perspectives. Academy of Management Journal, 55(4), 976–977. CrossRef Chrisman, J. J., & Patel, P. C. (2012). Variations in R&D investments of family and nonfamily firms: Behavioral agency and myopic loss aversion perspectives. Academy of Management Journal, 55(4), 976–977. CrossRef
go back to reference Chua, J. H., Chrisman, J. J., Steier, L. P., & Rau, S. B. (2012). Sources of heterogeneity in family firms: An introduction. Entrepreneurship Theory and Practice, 36(6), 1103–1113. CrossRef Chua, J. H., Chrisman, J. J., Steier, L. P., & Rau, S. B. (2012). Sources of heterogeneity in family firms: An introduction. Entrepreneurship Theory and Practice, 36(6), 1103–1113. CrossRef
go back to reference Cruz, C., & Nordqvist, M. (2012). Entrepreneurial orientation in family firms: A generational perspective. Small Business Economics, 38(1), 33–49. CrossRef Cruz, C., & Nordqvist, M. (2012). Entrepreneurial orientation in family firms: A generational perspective. Small Business Economics, 38(1), 33–49. CrossRef
go back to reference Cruz, C., Firfiray, S., & Gomez-Mejia, L. R. (2011). Socioemotional wealth and human resource management (HRM) in family-controlled firms. Research in Personnel and Human Resources Management, 30(1), 159–217. CrossRef Cruz, C., Firfiray, S., & Gomez-Mejia, L. R. (2011). Socioemotional wealth and human resource management (HRM) in family-controlled firms. Research in Personnel and Human Resources Management, 30(1), 159–217. CrossRef
go back to reference Cruz, C., Larraza–Kintana, M., Garcés–Galdeano, L., & Berrone, P. (2014). Are family firms really more socially responsible? Entrepreneurship Theory and Practice, 38(6), 1295–1316. Cruz, C., Larraza–Kintana, M., Garcés–Galdeano, L., & Berrone, P. (2014). Are family firms really more socially responsible? Entrepreneurship Theory and Practice, 38(6), 1295–1316.
go back to reference Cyert, R. M., & March, J. G. (1963). A behavioral theory of the firm. New York: Prentice-Hall. Cyert, R. M., & March, J. G. (1963). A behavioral theory of the firm. New York: Prentice-Hall.
go back to reference De Andrés, P., Iturriaga, F. J., & Rodríguez, J. A. (2005). Financial decisions and growth opportunities: A Spanish firm’s panel data analysis. Applied Financial Economics, 15(6), 391–407. CrossRef De Andrés, P., Iturriaga, F. J., & Rodríguez, J. A. (2005). Financial decisions and growth opportunities: A Spanish firm’s panel data analysis. Applied Financial Economics, 15(6), 391–407. CrossRef
go back to reference Debicki, B. J., Kellermanns, F. W., Chrisman, J. J., Pearson, A. W., & Spencer, B. A. (2016). Development of a socioemotional wealth importance (SEWi) scale for family firm research. Journal of Family Business Strategy, 7(1), 47–57. CrossRef Debicki, B. J., Kellermanns, F. W., Chrisman, J. J., Pearson, A. W., & Spencer, B. A. (2016). Development of a socioemotional wealth importance (SEWi) scale for family firm research. Journal of Family Business Strategy, 7(1), 47–57. CrossRef
go back to reference Debicki, B. J., Van de Graaff Randolph, R., & Sobczak, M. (2017). Socioemotional wealth and family firm performance: A stakeholder approach. Journal of Managerial Issues, 29(1), 82–111. Debicki, B. J., Van de Graaff Randolph, R., & Sobczak, M. (2017). Socioemotional wealth and family firm performance: A stakeholder approach. Journal of Managerial Issues, 29(1), 82–111.
go back to reference Deslandes, M., Fortin, A., & Landry, S. (2016). Payout differences between family and nonfamily listed firms. A socioemotional wealth perspective. Journal of Family Business Management, 6(1), 46–63. CrossRef Deslandes, M., Fortin, A., & Landry, S. (2016). Payout differences between family and nonfamily listed firms. A socioemotional wealth perspective. Journal of Family Business Management, 6(1), 46–63. CrossRef
go back to reference Fama, E. F., & French, K. R. (2001). Disappearing dividends: Changing firm characteristics or lower propensity to pay? Journal of Financial Economics, 60(1), 3–43. CrossRef Fama, E. F., & French, K. R. (2001). Disappearing dividends: Changing firm characteristics or lower propensity to pay? Journal of Financial Economics, 60(1), 3–43. CrossRef
go back to reference Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. CrossRef Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. CrossRef
go back to reference Gallo, M. A., Tàpies, J., & Cappuyns, K. (2004). Comparison of family and nonfamily business: Financial logic and personal preferences. Family Business Review, 17(4), 303–318. CrossRef Gallo, M. A., Tàpies, J., & Cappuyns, K. (2004). Comparison of family and nonfamily business: Financial logic and personal preferences. Family Business Review, 17(4), 303–318. CrossRef
go back to reference Gomez-Mejia, L. R., Nunez-Nickel, M., & Gutierrez, I. (2001). The role of family ties in agency contracts. Academy of Management Journal, 44(1), 81–95. Gomez-Mejia, L. R., Nunez-Nickel, M., & Gutierrez, I. (2001). The role of family ties in agency contracts. Academy of Management Journal, 44(1), 81–95.
go back to reference Gomez-Mejia, L. R., Haynes, K. T., Núñez-Nickel, M., Jacobson, K. J., & Moyano-Fuentes, J. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52(1), 106–137. CrossRef Gomez-Mejia, L. R., Haynes, K. T., Núñez-Nickel, M., Jacobson, K. J., & Moyano-Fuentes, J. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52(1), 106–137. CrossRef
go back to reference Gomez-Mejia, L. R., Makri, M., & Larraza-Kintana, M. (2010). Diversification decisions in family-controlled firms. Journal of Management Studies, 47(2), 223–252. CrossRef Gomez-Mejia, L. R., Makri, M., & Larraza-Kintana, M. (2010). Diversification decisions in family-controlled firms. Journal of Management Studies, 47(2), 223–252. CrossRef
go back to reference Gomez-Mejia, L. R., Cruz, C., Berrone, P., & De Castro, J. (2011). The bind that ties: Socioemotional wealth preservation in family firms. Academy of Management Annals, 5(1), 653–707. CrossRef Gomez-Mejia, L. R., Cruz, C., Berrone, P., & De Castro, J. (2011). The bind that ties: Socioemotional wealth preservation in family firms. Academy of Management Annals, 5(1), 653–707. CrossRef
go back to reference Gomez-Mejia, L. R., Campbell, J. T., Martin, G., Hoskisson, R. E., Makri, M., & Sirmon, D. G. (2014). Socioemotional wealth as a mixed gamble: Revisiting family firm R&D investments with the behavioral agency model. Entrepreneurship Theory and Practice, 38(6), 1351–1374. Gomez-Mejia, L. R., Campbell, J. T., Martin, G., Hoskisson, R. E., Makri, M., & Sirmon, D. G. (2014). Socioemotional wealth as a mixed gamble: Revisiting family firm R&D investments with the behavioral agency model. Entrepreneurship Theory and Practice, 38(6), 1351–1374.
go back to reference González, M., Guzmán, A., Pombo, C., & Trujillo, M. A. (2014). Family involvement and dividend policy in closely held firms. Family Business Review, 27(4), 365–385. CrossRef González, M., Guzmán, A., Pombo, C., & Trujillo, M. A. (2014). Family involvement and dividend policy in closely held firms. Family Business Review, 27(4), 365–385. CrossRef
go back to reference Gugler, K. (2003). Corporate governance, dividend payout policy, and the interrelation between dividends, R&D, and capital investment. Journal of Banking & Finance, 27(7), 1297–1321. CrossRef Gugler, K. (2003). Corporate governance, dividend payout policy, and the interrelation between dividends, R&D, and capital investment. Journal of Banking & Finance, 27(7), 1297–1321. CrossRef
go back to reference Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. (2006). Multivariate data analysis. Upper Saddle River: Pearson Prentice Hall. Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. (2006). Multivariate data analysis. Upper Saddle River: Pearson Prentice Hall.
go back to reference Holt, D. T., Pearson, A. W., Payne, G. T., & Sharma, P. (2018). Family business research as a boundary spanning platform. Family Business Review, 30(2), 182–202. CrossRef Holt, D. T., Pearson, A. W., Payne, G. T., & Sharma, P. (2018). Family business research as a boundary spanning platform. Family Business Review, 30(2), 182–202. CrossRef
go back to reference Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1–55. CrossRef Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1–55. CrossRef
go back to reference Isakov, D., & Weisskopf, J. (2015). Pay-out policies in founding family firms. Journal of Corporate Finance, 33, 330–344. CrossRef Isakov, D., & Weisskopf, J. (2015). Pay-out policies in founding family firms. Journal of Corporate Finance, 33, 330–344. CrossRef
go back to reference Jaskiewicz, P., Block, J. H., Miller, D., & Combos, J. G. (2017). Founder versus family owners’ impact on pay dispersion among non-CEO top managers: Implications for firm performance. Journal of Management, 43(5), 1524–1552. CrossRef Jaskiewicz, P., Block, J. H., Miller, D., & Combos, J. G. (2017). Founder versus family owners’ impact on pay dispersion among non-CEO top managers: Implications for firm performance. Journal of Management, 43(5), 1524–1552. CrossRef
go back to reference Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance and takeovers. American Economic Review, 76(2), 323–329. Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance and takeovers. American Economic Review, 76(2), 323–329.
go back to reference Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360. CrossRef Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360. CrossRef
go back to reference Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decisions under risk. Econometrica, 47, 262–291. CrossRef Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decisions under risk. Econometrica, 47, 262–291. CrossRef
go back to reference Karjalainen, J., Kasanen, E., Kinnunen, J., & Niskanen, J. (2020). Dividends and tax avoidance as drivers of earnings management: Evidence from dividend-paying private SMEs in Finland. Journal of Small Business Management, 1–33 In Press. Karjalainen, J., Kasanen, E., Kinnunen, J., & Niskanen, J. (2020). Dividends and tax avoidance as drivers of earnings management: Evidence from dividend-paying private SMEs in Finland. Journal of Small Business Management, 1–33 In Press.
go back to reference Kellermanns, F. W., & Eddleston, K. A. (2006). Corporate venturing in family firms: Does the family matter? Entrepreneurship Theory and Practice, 30(6), 837–854. CrossRef Kellermanns, F. W., & Eddleston, K. A. (2006). Corporate venturing in family firms: Does the family matter? Entrepreneurship Theory and Practice, 30(6), 837–854. CrossRef
go back to reference Kellermanns, F. W., Eddleston, K. A., Barnett, T., & Pearson, A. (2008). An exploratory study of family member characteristics and involvement: Effects on entrepreneurial behavior in the family firm. Family Business Review, 21(1), 1–14. CrossRef Kellermanns, F. W., Eddleston, K. A., Barnett, T., & Pearson, A. (2008). An exploratory study of family member characteristics and involvement: Effects on entrepreneurial behavior in the family firm. Family Business Review, 21(1), 1–14. CrossRef
go back to reference Koropp, C., Kellermanns, F. W., Grichnik, D., & Stanley, L. (2014). Financial decision making in family firms: An adaptation of the theory of planned behavior. Family Business Review, 27(4), 307–327. CrossRef Koropp, C., Kellermanns, F. W., Grichnik, D., & Stanley, L. (2014). Financial decision making in family firms: An adaptation of the theory of planned behavior. Family Business Review, 27(4), 307–327. CrossRef
go back to reference Kraiczy, N. D., Hack, A., & Kellermanns, F. W. (2015). What makes a family firm innovative? CEO risk-taking propensity and the organizational context of family firms. Journal of Product Innovation Management, 32(3), 334–348. CrossRef Kraiczy, N. D., Hack, A., & Kellermanns, F. W. (2015). What makes a family firm innovative? CEO risk-taking propensity and the organizational context of family firms. Journal of Product Innovation Management, 32(3), 334–348. CrossRef
go back to reference Lado, A. A., Dant, R. R., & Tekleab, A. G. (2008). Trust-opportunism paradox, relationalism, and performance in interfirm relationships: Evidence from the retail industry. Strategic Management Journal, 29(4), 401–423. CrossRef Lado, A. A., Dant, R. R., & Tekleab, A. G. (2008). Trust-opportunism paradox, relationalism, and performance in interfirm relationships: Evidence from the retail industry. Strategic Management Journal, 29(4), 401–423. CrossRef
go back to reference Lardon, A., Dellof, M., & Joriseen, A. (2017). Outside CEOs, board control and the financing policy of small privately held family firms. Journal of Family Business Strategy, 8(1), 29–41. CrossRef Lardon, A., Dellof, M., & Joriseen, A. (2017). Outside CEOs, board control and the financing policy of small privately held family firms. Journal of Family Business Strategy, 8(1), 29–41. CrossRef
go back to reference Le Breton-Miller, I. L., & Miller, D. (2006). Why do some family businesses out-compete? Governance, long-term orientations, and sustainable capability. Entrepreneurship Theory and Practice, 30(6), 731–746. CrossRef Le Breton-Miller, I. L., & Miller, D. (2006). Why do some family businesses out-compete? Governance, long-term orientations, and sustainable capability. Entrepreneurship Theory and Practice, 30(6), 731–746. CrossRef
go back to reference Mariotti, S., Marzano, R., & Piscitello, L. (2020). The role of family firms’ generational heterogeneity in the entry mode choice in foreign markets. Journal of Business Research. In Press. Mariotti, S., Marzano, R., & Piscitello, L. (2020). The role of family firms’ generational heterogeneity in the entry mode choice in foreign markets. Journal of Business Research. In Press.
go back to reference Martin, G., Campbell, J. T., & Gomez-Mejia, L. (2016). Family control, socioemotional wealth and earnings management in publicly traded firms. Journal of Business Ethics, 133(3), 453–469. CrossRef Martin, G., Campbell, J. T., & Gomez-Mejia, L. (2016). Family control, socioemotional wealth and earnings management in publicly traded firms. Journal of Business Ethics, 133(3), 453–469. CrossRef
go back to reference Memili, E., Misra, K., Chang, E. P. C., & Chrisman, J. J. (2013). The propensity to use incentive compensation for non-family managers in SME family firms. Journal of Family Business Management, 3(1), 62–80. CrossRef Memili, E., Misra, K., Chang, E. P. C., & Chrisman, J. J. (2013). The propensity to use incentive compensation for non-family managers in SME family firms. Journal of Family Business Management, 3(1), 62–80. CrossRef
go back to reference Michiels, A., & Molly, V. (2017). Financing decisions in family businesses: A review of suggestions for developing the field. Family Business Review, 30(4), 369–399. CrossRef Michiels, A., & Molly, V. (2017). Financing decisions in family businesses: A review of suggestions for developing the field. Family Business Review, 30(4), 369–399. CrossRef
go back to reference Michiels, A., Voordeckers, W., Lybaert, N., & Steijvers, T. (2015). Dividends and family governance practices in private family firms. Small Business Economics, 44(2), 299–314. CrossRef Michiels, A., Voordeckers, W., Lybaert, N., & Steijvers, T. (2015). Dividends and family governance practices in private family firms. Small Business Economics, 44(2), 299–314. CrossRef
go back to reference Michiels, A., Uhlaner, L., & Dekker, J. (2017). The effect of family business professionalization on dividend payout. Journal of Small Business and Enterprise Development, 24(4), 971–990. CrossRef Michiels, A., Uhlaner, L., & Dekker, J. (2017). The effect of family business professionalization on dividend payout. Journal of Small Business and Enterprise Development, 24(4), 971–990. CrossRef
go back to reference Miller, D., & Le Breton-Miller, I. (2014). Deconstructing socioemotional wealth. Entrepreneurship Theory and Practice, 38(4), 713–720. CrossRef Miller, D., & Le Breton-Miller, I. (2014). Deconstructing socioemotional wealth. Entrepreneurship Theory and Practice, 38(4), 713–720. CrossRef
go back to reference Miller, D., Le Breton-Miller, I., Lester, R. H., & Cannella Jr., A. A. (2007). Are family firms really superior performers? Journal of Corporate Finance, 13(5), 829–858. CrossRef Miller, D., Le Breton-Miller, I., Lester, R. H., & Cannella Jr., A. A. (2007). Are family firms really superior performers? Journal of Corporate Finance, 13(5), 829–858. CrossRef
go back to reference Molly, V., Uhlaner, L. M., De Massis, A., & Laveren, E. (2019). Family-centered goals, family board representation, and debt financing. Small Business Economics, 53(1), 269–286. CrossRef Molly, V., Uhlaner, L. M., De Massis, A., & Laveren, E. (2019). Family-centered goals, family board representation, and debt financing. Small Business Economics, 53(1), 269–286. CrossRef
go back to reference Motylska-Kuzma, A. (2017). The financial decisions of family businesses. Journal of Family Business Management, 7(3), 351–373. CrossRef Motylska-Kuzma, A. (2017). The financial decisions of family businesses. Journal of Family Business Management, 7(3), 351–373. CrossRef
go back to reference Nason, R., Mazzelli, A., & Carney, M. (2019). The ties that unbind: Socialization and business-owning family reference point shift. Academy of Management Review, 44(4), 846–870. CrossRef Nason, R., Mazzelli, A., & Carney, M. (2019). The ties that unbind: Socialization and business-owning family reference point shift. Academy of Management Review, 44(4), 846–870. CrossRef
go back to reference Pindado, J., Requejo, I., & De la Torre, C. (2012). Do family firms use dividend policy as a governance mechanism? Evidence from the euro zone. Corporate Governance: An International Review, 20(5), 413–431. CrossRef Pindado, J., Requejo, I., & De la Torre, C. (2012). Do family firms use dividend policy as a governance mechanism? Evidence from the euro zone. Corporate Governance: An International Review, 20(5), 413–431. CrossRef
go back to reference Sánchez-Marín, G., Meroño-Cerdán, A. L., & Carrasco-Hernández, A. J. (2019). Formalized HR practices and firm performance: An empirical comparison of family and non-family firms. The International Journal of Human Resource Management, 30(7), 1084–1110. CrossRef Sánchez-Marín, G., Meroño-Cerdán, A. L., & Carrasco-Hernández, A. J. (2019). Formalized HR practices and firm performance: An empirical comparison of family and non-family firms. The International Journal of Human Resource Management, 30(7), 1084–1110. CrossRef
go back to reference Sánchez-Marín, G., Carrasco-Hernández, A. J., & Danvila-del-Valle, I. (2020). Effects of family involvement on the monitoring of CEO compensation. International Entrepreneurship and Management Journal, 16(4), 1347–1366. CrossRef Sánchez-Marín, G., Carrasco-Hernández, A. J., & Danvila-del-Valle, I. (2020). Effects of family involvement on the monitoring of CEO compensation. International Entrepreneurship and Management Journal, 16(4), 1347–1366. CrossRef
go back to reference Schulze, W. S., & Kellermanns, F. W. (2015). Reifying socioemotional wealth. Entrepreneurship Theory and Practice, 39(3), 447–459. CrossRef Schulze, W. S., & Kellermanns, F. W. (2015). Reifying socioemotional wealth. Entrepreneurship Theory and Practice, 39(3), 447–459. CrossRef
go back to reference Sciascia, S., Mazzola, P., & Kellermanns, F. W. (2014). Family management and profitability in private family-owned firms: Introducing generational stage and the socioemotional wealth perspective. Journal of Family Business Strategy, 5(2), 131–137. CrossRef Sciascia, S., Mazzola, P., & Kellermanns, F. W. (2014). Family management and profitability in private family-owned firms: Introducing generational stage and the socioemotional wealth perspective. Journal of Family Business Strategy, 5(2), 131–137. CrossRef
go back to reference Setia-Atmaja, L. (2010). Dividend and debt policies of family controlled firms. International Journal of Managerial Finance, 6(2), 128–142. CrossRef Setia-Atmaja, L. (2010). Dividend and debt policies of family controlled firms. International Journal of Managerial Finance, 6(2), 128–142. CrossRef
go back to reference Setia-Atmaja, L., Tanewski, G. A., & Skully, M. (2009). The role of dividends, debt and board structure in the governance of family controlled firms. Journal of Business Finance and Accounting, 36(7-8), 863–898. CrossRef Setia-Atmaja, L., Tanewski, G. A., & Skully, M. (2009). The role of dividends, debt and board structure in the governance of family controlled firms. Journal of Business Finance and Accounting, 36(7-8), 863–898. CrossRef
go back to reference Sharma, V. (2011). Independent directors and the propensity to pay dividends. Journal of Corporate Finance, 17(4), 1001–1015. CrossRef Sharma, V. (2011). Independent directors and the propensity to pay dividends. Journal of Corporate Finance, 17(4), 1001–1015. CrossRef
go back to reference Sonfield, M. C., & Lussier, R. N. (2004). First-, second-, and third-generation family firms: A comparison. Family Business Review, 17(3), 189–202. CrossRef Sonfield, M. C., & Lussier, R. N. (2004). First-, second-, and third-generation family firms: A comparison. Family Business Review, 17(3), 189–202. CrossRef
go back to reference Swab, R. G., Sherlock, C., Markin, E., & Dibrell, C. (2020). “SEW” what do we know and where do we go? A review of socioemotional wealth and a way forward. Family Business Review, 33(4), 424–445. CrossRef Swab, R. G., Sherlock, C., Markin, E., & Dibrell, C. (2020). “SEW” what do we know and where do we go? A review of socioemotional wealth and a way forward. Family Business Review, 33(4), 424–445. CrossRef
go back to reference Vandemaele, S., & Vancauteren, M. (2015). Nonfinancial goals, governance, and dividend payout in private family firms. Journal of Small Business Management, 53(1), 166–182. CrossRef Vandemaele, S., & Vancauteren, M. (2015). Nonfinancial goals, governance, and dividend payout in private family firms. Journal of Small Business Management, 53(1), 166–182. CrossRef
go back to reference Wei, Z., Wu, S., Li, C., & Chen, W. (2011). Family control, institutional environment and cash dividend policy: Evidence from China. China Journal of Accounting, 4(1-2), 29–46. CrossRef Wei, Z., Wu, S., Li, C., & Chen, W. (2011). Family control, institutional environment and cash dividend policy: Evidence from China. China Journal of Accounting, 4(1-2), 29–46. CrossRef
go back to reference Wiseman, R. M., & Gomez-Mejia, L. R. (1998). A behavioral agency model of managerial risk taking. Academy of Management Review, 23(1), 133–153. CrossRef Wiseman, R. M., & Gomez-Mejia, L. R. (1998). A behavioral agency model of managerial risk taking. Academy of Management Review, 23(1), 133–153. CrossRef
go back to reference Xi, J. M., Kraus, S., Filser, M., & Kellermanns, F. W. (2015). Mapping the field of family business research: Past trends and future directions. International Entrepreneurship and Management Journal, 11(1), 113–132. CrossRef Xi, J. M., Kraus, S., Filser, M., & Kellermanns, F. W. (2015). Mapping the field of family business research: Past trends and future directions. International Entrepreneurship and Management Journal, 11(1), 113–132. CrossRef
Metadata
Title
Influence of family-centered goals on dividend policy in family firms: A socioemotional wealth approach
Authors
María Belda-Ruiz
Gregorio Sánchez-Marín
J. Samuel Baixauli-Soler
Publication date
17-02-2021
Publisher
Springer US
Published in
International Entrepreneurship and Management Journal
Print ISSN: 1554-7191
Electronic ISSN: 1555-1938
DOI
https://doi.org/10.1007/s11365-021-00741-x

Premium Partner