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Family Ownership, D...
Family Ownership, Dual Class Shares and Risk Management
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Hagelin, Niclas (author)
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- Holmén, Martin, 1966 (author)
- Gothenburg University,Göteborgs universitet,Centrum för finans,Centre for Finance
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Pramborg, Bengt (author)
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(creator_code:org_t)
- Elsevier BV, 2006
- 2006
- English.
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In: Global Finance Journal. - : Elsevier BV. - 1044-0283. ; 16:3, s. 283-301
- Related links:
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https://gup.ub.gu.se...
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Abstract
Subject headings
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- We investigate whether the use of dual-class shares affects the financial policy of Swedish public corporations. Specifically, we distinguish between firms that are controlled by owners with poor portfolio diversification (families) and those controlled by owners with diversified portfolios (institutions). We find that, on average, family-controlled firms do not rely on less debt, more corporate diversification, or more financial hedging than non-family firms do. For family-controlled firms, however, we find that controlling owners with higher vote-to-capital ratios are associated with firms with less debt and lower probabilities of hedging. This evidence is consistent with the perception that family-controlled firms use shares with different voting rights so as simultaneously to maintain control and reduce the family's portfolio risk.
Subject headings
- SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)
- SOCIAL SCIENCES -- Economics and Business -- Economics (hsv//eng)
Keyword
- Dual-class shares; Hedging; Risk management; Capital structure; Family firms
Publication and Content Type
- ref (subject category)
- art (subject category)
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