Outside CEOs, board control and the financing policy of small privately held family firms

We investigate how the presence of an-outside CEO is related to the financing policy of privately held family firms, taking into account the degree of family control via the board of directors. For a sample of 367 Belgian firms we find that family firms with an outside CEO have a lower leverage, although they take more entrepreneurial risk. The negative relation between the presence of an outside CEO and leverage is more pronounced for long-term debt than for short-term debt. Family control via the board of directors reduces the effect of an outside CEO on entrepreneurial risk and leverage. (C) 2017 Elsevier Ltd. All rights reserved.

Publication year:2017

Keywords:A1 Journal article

BOF-keylabel:yes

BOF-publication weight:2

CSS-citation score:1

Authors from:Higher Education

Accessibility:Open