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Please use this identifier to cite or link to this item: http://hdl.handle.net/1942/10317

Title: Private Family Ownership and the Agency Costs of Debt
Authors: STEIJVERS, Tensie
Issue Date: 2009
Citation: FAMILY BUSINESS REVIEW, 22(4). p. 333-346
Abstract: This article presents empirical evidence on the agency costs of debt in private family firms by examining the explicit (interest rate) as well as implicit (business and personal collateral) bank loan price simultaneously. Using a cross sectional sample of lines-of-credit of the NSSBF database, family firms appear to be more likely to pledge personal collateral which suggests that agency costs of debt are higher in family firms. Hence, personal collateral seems to be a better instrument than interest rates or business collateral for financial institutions to cope with the specific agency problems (e.g. self-control problems and negative effects of parental altruism) in family firms.
Notes: [Steijvers, Tensie; Voordeckers, Wim] Hasselt Univ, Ctr Entrepreneurship & Innovat KIZOK, Diepenbeek, Belgium.
URI: http://hdl.handle.net/1942/10317
DOI: 10.1177/0894486509338291
ISI #: 000272157700004
ISSN: 0894-4865
Category: A1
Type: Journal Contribution
Validation: ecoom, 2010
Appears in Collections: Research publications

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