The influence of financing constraints on the performance of family businesses

• Main Authors: Yu-Chan Wang, 王語禪
• Other Authors: Bing-Huei Lin
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/cgi-bin/gs32/gsweb.cgi/login?o=dnclcdr&s=id=%22107NCHU5304028%22.&searchmode=basic

碩士 === 國立中興大學 === 財務金融學系所 === 107 === In Taiwan, 70% of companies belong to family businesses. The differences in the business characteristics of family businesses and non-family businesses are issues in the research field. In general, it is more common to explore the family business''s operational advantages from the perspective of agency problems. On the other hand, some scholars also study the family business''s stakeholder''s stakes in the perspective of Socioemotional Wealth. Invest to study the different business characteristics of family businesses. According to past scholars'' research, in Taiwan, overconfident CEOs are prone to financial crisis during non- decline periods. In general, family-owned companies with weaker board supervision functions are more prone to overconfident CEOs. According to past scholars'' research, in Taiwan, as the enterprise life cycle becomes mature and decline, the agency problem becomes more serious. At the same time, studies have shown that overconfident CEOs are more likely to fall into financial crisis during the non- decline period. At the same time, there are also opinions that as the life cycle of the firm enters a mature and recession period, the agency problem becomes more serious. The shareholding structure of family companies with more equity concentration should reduce the agency problem. This study uses the OLS method to analyze whether family businesses have better business performance in the later stages of different life cycles, and observe the impact of family business on the performance of financing restrictions on corporate performance, and discuss the reasons for different impacts. This study uses the least squares method (OLS) for Multiple Regression Analysis, and refers to the past scholars'' research to divide the business life cycle and establish the restrictions KZindex index. Dividing the group into four equal parts by ranking KZindex to study the impact on performance when different levels of financing restrictions. The results show that family businesses have better ROA during maturity and decline, and family businesses have less negative impact on corporate performance on financing constraints. In the high level financial restricted group, family businesses generally have poor performance. However, in the period of life cycle decline, family businesses have better performance. The research results suggest that family business managers should pay attention to the company''s information transparency and corporate governance during the growth period, so that the company can avoid falling into the financing restrictions; Companies in maturity and decline should focus on the emotional connection with the company''s stakeholders and create long-term mutual trust and good interaction. When the company faces financial constraints, the company''s stakeholders will help the company get out of trouble and keep better performance.