Abstract

GARCIA BERUMEN GONZALEZ, José; GARCIA SOTO, Pablo  and  DOMENGE MUNOZ, Rogerio. Capital structure determinants in small and medium size Mexican family firms. Contad. Adm [online]. 2012, vol.57, n.3, pp.67-96. ISSN 0186-1042.

This paper examines the determinants of capital structure in family-owned small and medium-sized enterprises in Mexico. We suggest that the size, age, managerial planning, family control and the age of their CEO or owner influence financing decisions. The study's hypotheses are tested by analyzing a survey data collected from 240 Mexican SMEs with Path Analysis. We found that the size of the firm has a positive relationship with debt; the age of SME's owner has an influence on the equity and retained earnings funding. Through splitting the data by sectors and size, we also found two additional relationships: between size and equity, and between managerial planning formality and debt. Our findings suggest directions for further research on Mexican family-owned SMEs.

Keywords : capital structure; small and medium-sized enterprises; structural equation model; Mexico.

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