The impact of family ownership and under-aspiration performance on a firm’s capital structure

  • Received July 31, 2021;
    Accepted August 30, 2021;
    Published September 1, 2021
  • Author(s)
  • DOI
  • Article Info
    Volume 18 2021, Issue #3, pp. 183-193
  • Cited by
    1 articles

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This work is licensed under a Creative Commons Attribution 4.0 International License

Research on the capital structure of family firms has flourished in recent years, but the impact of performance aspiration and family ownership together on capital structure remains inadequately investigated. Therefore, the purpose of this study is to explore the impact of family ownership and under-aspiration performance and their interaction on capital structure. Panel data estimations were applied with a unique dataset of 3.857 observations from 387 public firms in Vietnam from 2010 to 2020 (134 family firms and 253 non-family firms). The results reveal that family ownership and under-aspiration performance each has a positive effect on capital structure. However, under-aspiration performance negatively moderates the positive effect of family ownership on capital structure. These findings contribute to a stream of studies on the capital structure of family firms by exploring the role of under-aspiration performance, as well as provide important implications for shareholders, managers and debtors in financial management.

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    • Table 1. Firms categorized by 2-digit ICB code industries
    • Table 2. Variable definition and measurement
    • Table 3. Descriptive statistics analysis
    • Table 4. Correlation matrix
    • Table 5. POLS and Fixed effects regression
    • Table 6. Feasible GLS and System GMM regression
    • Conceptualization
      Kieu Minh Nguyen, Tu Minh Vu
    • Project administration
      Kieu Minh Nguyen
    • Resources
      Kieu Minh Nguyen
    • Supervision
      Kieu Minh Nguyen
    • Writing – review & editing
      Kieu Minh Nguyen
    • Data curation
      Tu Minh Vu
    • Formal Analysis
      Tu Minh Vu
    • Investigation
      Tu Minh Vu
    • Methodology
      Tu Minh Vu
    • Software
      Tu Minh Vu
    • Validation
      Tu Minh Vu
    • Visualization
      Tu Minh Vu
    • Writing – original draft
      Tu Minh Vu