Koszt kapitału własnego w firmach rodzinnych – badania spółek notowanych na Giełdzie Papierów Wartościowych w Warszawie
Cost of equity capital in family firms - research on companies listed on Warsaw Stock Exchange

Summary/Abstract: Purpose – The aim of the study was to examine link between family control and cost of equity capital, based on the sample of companies listed on the Warsaw Stock Exchange (WSE). Design/methodology/approach – The empirical research study was conducted on unbalanced panel of public companies listed on Warsaw Stock Exchange. The research period covered the years 2006–2015. The primary method used was linear regression. The parameters were estimated using pooled OLS method. The dependent variable was cost of equity capital and the main test variable family control. Additionally appropriate control variables were included. Findings – A lower level of the cost of equity capital in family firms was observed (compared to non-family firms). Factors influencing observed link between family control and cost of equity capital were indicated. That differentiate family and non-family enterprises that influence observed interdependence are indicated. These factors include lower debt level of family firms, their smaller size and higher return on assets. Originality/value – The research used panel data of 608 companies listed on WSE covering long period of years 2006–2015 (3,414 observations). In contrast to the prior studies on the impact of family control on company’s results, which were often focused on corporate value, current study is concentrated on the cost of equity capital. The link between family control and cost of equity capital was analysed, indicating factors that, when differentiating family companies from non-family ones, affect the interdependence studied.

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