Table 5.
Multinomial logit model
| Marginal effects | ||||
|---|---|---|---|---|
| Internal financing | Bank debt | Family capital | External capital | |
| Financial variables | ||||
| Liquidity | 0.900 (7.69)*** | − 0.830 (− 4.95)*** | 0.147 (1.11) | − 0.216 (− 3.11)*** |
| Profitability | 0.348 (1.72)* | 0.535 (2.06)** | − 0.779 (− 3.59)*** | − 0.103 (− 1.13) |
| Size | 0.004 (0.31) | − 0.011 (− 0.64) | 0.015 (1.07) | − 0.008 (− 1.50) |
| Age | 0.171 (4.59)*** | − 0.076 (− 1.62) | − 0.093 (− 2.41)** | − 0.002 (− 0.11) |
| Risk | − 0.003 (− 1.48) | 0.000 (0.20) | 0.002 (1.71)* | 0.000 (0.96) |
| Effective tax rate | − 0.046 (− 0.84) | 0.168 (2.73)*** | − 0.127 (− 2.55)** | 0.005 (0.31) |
| Family firm variables | ||||
| SEW F-dimension | 0.002 (0.14) | 0.020 (1.43) | − 0.007 (− 0.61) | − 0.015 (− 3.47)*** |
| SEW R-dimension | 0.015 (1.31) | − 0.047 (− 3.53)*** | 0.029 (2.63)*** | 0.003 (0.82) |
| Family charter | 0.054 (1.40) | − 0.151 (− 3.49)*** | − 0.002 (− 0.06) | 0.099 (3.43)*** |
| Non-family CEO | 0.084 (2.36)** | 0.008 (0.19) | − 0.090 (− 3.23)*** | − 0.001 (− 0.12) |
| Controlled for year | Yes | |||
| Controlled for industry | Yes | |||
| Log likelihood | − 1133.237 | |||
| Pseudo-R2 | 0.1079 | |||
| Number of observ | 1,087 | |||
Multinomial logit model with categories defined as 0 = internal financing, 1 = bank loans, 2 = family capital, and 3 = external capital. Absolute value of z-statistics between parentheses. *, **, and *** significant at the 10%, 5%, and 1% level, respectively