TY  - JOUR
AB  - Purpose The objective of this study is to explain family firm payout decisions based on socioemotional wealth (SEW) considerations.Design/methodology/approach A sample of publicly listed Canadian companies is examined for the period from 2003 to 2008. Distinguishing family firms from nonfamily firms, a Probit regression is used to analyze the likelihood of making a payout. For payout firms, regressions are used to analyze the relationship between payout level (dividends and share repurchases) and payout mix and family firms.Findings Results indicate that family firms are more likely to make a payout than nonfamily firms. Among payout firms, the level of payout among payout firms is lower for family firms than for nonfamily firms and their portion of payout in the form of dividends is higher. Lone founder family firms have a lower likelihood of making payouts than other family firms. However, among payout firms, they pay out more than other family firms and have a smaller percentage of their total payout in dividends than other family firms.Research limitations/implications Results are impacted by the definition of what constitutes a family firm. Family ownership was used as a proxy for the underlying SEW considerations. Future research could involve interviews with family firm representatives to investigate the relative importance of SEW considerations in their payout decisions.Originality/value In providing an alternative theoretical framing of family firms’ payout policies, the study suggests that payout differences between family and nonfamily firms may be driven in part by SEW considerations.
VL  - 6
IS  - 1
SN  - 2043-6238
DO  - 10.1108/JFBM-05-2015-0020
UR  - https://doi.org/10.1108/JFBM-05-2015-0020
AU  - Deslandes Manon
AU  - Fortin Anne
AU  - Landry Suzanne
ED  - Lorna Collins
PY  - 2016
Y1  - 2016/01/01
TI  - Payout differences between family and nonfamily listed firms: a socioemotional wealth perspective
T2  - Journal of Family Business Management
PB  - Emerald Group Publishing Limited
Y2  - 2024/04/25
ER  -