Cash holdings decision-making in spanish family firms: Exploring the impact of heterogeneity

• Sonia Sánchez-Andújar ^[1] ; Purificación Parrado-Martínez ^[1] ; María Comino-Jurado ^[1]
  1. [1] Universidad de Jaén

     Universidad de Jaén

     Jaén, España

     
• Localización: IX Jornada Internacional AECA sobre Valoración, Financiación y Gestión de Riesgos: actas. Cuenca 2022, 2022, ISBN 978-84-19167-36-1
• Idioma: inglés
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• Resumen

  • This paper analyses the determinants of the level of cash holdings in family firms, with an especial focus on the family involvement on the board of directors and the generational stage as key explicative factors of heterogeneity within this particular type of businesses. We estimate a partial least squares model based on a large sample of Spanish family firms. Our results show that the lower the level of family involvement on the board of directors and the higher thegenerational stage, the higher the level of cash holdings. Consequently, in addition to traditional determinants of corporate liquidity, the above variables should be considered to better understand the complexity of cash holdings decision-making in family firms.