The Influence of Age and Size on Family-Owned Firms’ Financing Decisions: Empirical Evidence Using Panel Data

Based on four samples of Portuguese family-owned firmsdi) 185 young, low-sized family-owned firms; ii) 167 young, high-sized familyowned firms; iii) 301 old, low-sized family-owned firms; and iv) 353 old, high-sized family-owned firms d we show that age and size are fundamental characteristics in family-owned firms’ financing decisions. The multiple empirical evidence obtained allows us to conclude that the financing decisions of young, low-sized family-owned firms are quite close to the assumptions of Pecking Order Theory, whereas those of old, high-sized family-owned firms are quite close to what is forecast by Trade-Off Theory. The lesser information asymmetry associated with greater age, the lesser likelihood of bankruptcy associated with greater size, as well as the lesser concentration of ownership and management consequence of greater age and size, may be especially important in the financing decisions of family-owned firms. In addition, we find that GDP, interest rate and periods of crisis have a greater effect on the debt of young, low-sized family-owned firms than on that of family-owned firms of the remainder research samples.

Estudo dos determinantes do crescimento das empresas familiares portuguesas

No presente estudo procuramos analisar os determinantes do crescimento das empresas familiares portuguesas, através de uma amostra de empresas familiares membros da Associação de Empresas Familiares, durante o período de 2006 a 2014. Com vista ao teste das hipóteses em estudo foram utilizados dados em painel, com modelos de efeitos fixo e aleatório. A variável dependente definida foi o crescimento das vendas. As variáveis independentes definidas foram: dimensão; idade; endividamento; endividamento de curto prazo; endividamento de médio longo prazo; produtividade da mão-de-obra; estrutura do ativo; variável dummy da crise financeira; variável dummy da administração pertencer à família; e variável dummy do género do administrador. Os resultados obtidos confirmam a dimensão, a idade e o endividamento como determinantes do crescimento; ABSTRACT: In the present study we analyzed the determinants of growth of family businesses through a sample of family businesses members of the Family Business Association, during the period between 2006 and 2014. In order to test the hypotheses under study were used panel data, with models of fixed and random effects. The Sales growth was defined as the dependent variable. The independent variables were defined: size; age; debt; short-term debt; medium and long term debt; labor productivity; asset structure; dummy variable of the financial crisis; dummy administration belong to the family; and dummy administrator gender variable. The results confirm the size, age, and debt as determinants of growth.

On the Social Aspects of Unemployment: The Case of Life Satisfaction

Unemployment is related to economic, political and social aspects. One of the least analysed social aspects is the relationship between unemployment and the (individual) perceived levels of well-being, such as life satisfaction or happiness. This chapter complements previous work on the subject, using a panel-data econometrics methodology to analyze the relationship between unemployment and life satisfaction in a wide range of countries worldwide. The results confirm that unemployment has a negative effect, statistically significant, on life satisfaction, either for men or for women.

Estimation of water use and crop coefficients for an intensive olive orchard using sap flow measurements and modeled data

Olive tree sap flow measurements were collected in an intensive orchard near Évora, Portugal, during the irrigation seasons of 2013 and 2014, to calculate daily tree transpiration rates (T_SF). Meteorological variables were also collected to calculate reference evapotranspiration (ETo). Both data were used to assess values of basal crop coefficient (Kcb) for the period of the sap flow observations. The soil water balance model SIMDualKc was calibrated with soil, biophysical ground data and sap flow measurements collected in 2013. Validated in 2014 with collected sap flow observations, the model was used to provide estimates of dual e single crop coefficients for 2014 crop growing season. Good agreement between model simulated daily transpiration rates and those obtained with sapflow measurements was observed for 2014 (R2=0.76, RMSE=0.20 mm d-1), the year of validation, with an estimation average absolute error (AAE) of 0.20 mm d-1. Olive modeled daily actual evapotranspiration resulted in atual ETc values of 0.87, 2.05 and 0.77 mm d-1 for 2014 initial, mid- and end-season, respectively. Actual crop coefficient (Kc act) values of 0.51, 0.43 and 0.67 were also obtained for the same periods, respectively. Higher Kc values during spring (initial stage) and autumn (end-stage) were published in FAO56, varying between 0.65 for Kc ini and 0.70 for Kc end. The lower Kc mid value of 0.43 obtained for the summer (mid-season) is also inconsistent with the FAO56 expected Kc mid value of 0.70 for the period. The modeled Kc results are more consistent with the ones published by Allen & Pereira [1] for olive orchards with effective ground cover of 0.25 to 0.5, which vary between 0.40 and 0.80 for Kc ini, 0.40–0.60 for Kc mid with no active ground cover, and 0.35–0.75 for Kc end, depending on ground cover. The SIMDualKc simulation model proved to be appropriate for obtaining evapotranspiration and crop coefficient values for our intensive olive orchard in southern Portugal.