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Corporate Governance and Leverage: Empirical evidence of Family SMEs

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J. Chen
J. Chen
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Abstract

This study investigates the relationships between the governance of family SMEs and the financial behaviour in an emergent economy. The companies analysed were selected with a random sampling method. The research hypotheses were tested using a fixed effects regression analysis model, and the reliability parameters of the estimates were then checked. The data were collected through a questionnaire that covered qualitative and quantitative aspects. The results suggest that the financial behaviour of firms is significantly influenced by the economic structure, highlighting that the firms analysed prefer to use their resources to finance the firm. This preference is reduced as the size of the firm increases .
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Corporate Governance and Leverage:
Empirical evidence of Family SMEs
Jian Chen (SoB, Shangai, China)
Tian Wang (SoB, Shangai, China)
Abstract
This study investigates the relationships between the governance of family SMEs and
the financial behaviour in an emergent economy. The companies analysed were se-
lected with a random sampling method. The research hypotheses were tested using a
fixed effects regression analysis model, and the reliability parameters of the estimates
were then checked. The data were collected through a questionnaire that covered qual-
itative and quantitative aspects.
The results suggest that the financial behaviour of firms is significantly influenced by
the economic structure, highlighting that the firms analysed prefer to use their re-
sources to finance the firm. This preference is reduced as the size of the firm increas-
es.
Keywords: Ownership structure, Regression Analysis, Financial behaviour, Size
346
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