Xiang, Dong; Zhang, Yuming; Worthington, Andrew C. - 2021
Using a sample of hi-tech Chinese small and medium-size enterprises (SMEs), we compare financing costs for family and … nonfamily firms. We find that family SMEs enjoy relatively lower average financing costs through mitigating agency problems, the … provision of greater collateral, and the reliance on internal finance. Family firms may also make better use of their advantage …