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International Entrepreneurship and Management Journal

Erschienen in:

17.02.2021

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

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

Erschienen in: International Entrepreneurship and Management Journal | Ausgabe 4/2022

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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.

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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.

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Titel: Influence of family-centered goals on dividend policy in family firms: A socioemotional wealth approach
verfasst von: María Belda-Ruiz
Gregorio Sánchez-Marín
J. Samuel Baixauli-Soler
Publikationsdatum: 17.02.2021
Verlag: Springer US
Erschienen in: International Entrepreneurship and Management Journal / Ausgabe 4/2022
Print ISSN: 1554-7191
Elektronische ISSN: 1555-1938
DOI: https://doi.org/10.1007/s11365-021-00741-x

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