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Academic Journal of Business & Management, 2023, 5(4); doi: 10.25236/AJBM.2023.050404.

Second generation characteristics and leverage ratio of family business

Author(s)

Yong Xia

Corresponding Author:
Yong Xia
Affiliation(s)

School of Business, Nanjing Normal University, Nanjing, China

Abstract

In the context of the wave of intergenerational inheritance, this paper studies the influence of the characteristics of the second generation on the leverage ratio of family firms based on the sample of family firms that realized intergenerational inheritance between 2008 and 2021. It is found that the second generation with economic management background is more inclined to equity financing, with lower leverage ratio. The second generation with overseas study background has a stronger preference for equity financing in external financing; The education level of the second generation has no significant influence on the leverage ratio of the family business. It is of great significance to train successors of family enterprises and construct reasonable capital structure.

Keywords

second generation characteristics; Economics and management background; Overseas study background; Leverage ratio

Cite This Paper

Yong Xia. Second generation characteristics and leverage ratio of family business. Academic Journal of Business & Management (2023) Vol. 5, Issue 4: 18-23. https://doi.org/10.25236/AJBM.2023.050404.

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