Poslovna izvrsnost, Vol. 8 No. 2, 2014.
Izvorni znanstveni članak
IMPACT OF FAMILY OWNERSHIP ON INVESTMENT DECISION: COMPARATIVE ANALYSIS OF FAMILY AND NON-FAMILY COMPANIES LISTED AT KARACHI STOCK EXCHANGE (PAKISTAN)
Safdar Husain Tahir
orcid.org/0000-0002-2186-1518
; Government College University, Faisalabad, Pakistan
Hazoor Muhammad Sabir
; Government College University, Faisalabad, Pakistan
Sažetak
The current study attempts to investigate the impact of family ownership structure on investment decisions of firms listed at the Karachi Stock Exchange (KSE) of Pakistan. For distinguishing family owned business (FOB) from non-family (NFOB), two threshold points
of ownership structure (25% & 50%) were used. Panel data forms ranging from the period 2002-2013 were collected from different sources such as annual reports of firms, Financial statements, business recorder, stock exchanges, telephone calls, emails and balance sheet
analyses of joint stocks. Generalized Method of Moments (GMM) was applied to estimate the coefficients of variables of interest. Empirical results revealed that there was stronger positive impact of cashflow on investment in NFOBs in comparison with FOBs. Conversely,
family firms have lower investment-cashfl ow sensitivity even when blockholder’s effect was taken in consideration. The estimated coefficients confirmed less investment-cash flow sensitivity in those firms comparatively where professional manager serves as a chief executive officer (CEO). It was also revealed that family firms alleviate financial constraints as well as free cash flow problems. It was concluded that broader investment horizons, corporate governance mechanism and flexibility to manage financial constraints make family firms capable of reducing investment-cash flow sensitivity.
Ključne riječi
Family Business; Panel data; Generalized Method of Moments (GMM); Karachi Stock Exchange (KSE); and Investment Decision
Hrčak ID:
133234
URI
Datum izdavanja:
22.12.2014.
Posjeta: 3.128 *