| 000 | 01164nab a22001217a 4500 | ||
|---|---|---|---|
| 008 | 160615b1999 xxu||||| |||| 00| 0 eng d | ||
| 100 | _aMcConaughy, Daniel L | ||
| 245 |
_aIs the cost of capital different from family firms? _cMcConaughy, Daniel L. |
||
| 260 | _c1999 | ||
| 300 | _a353 - 360 | ||
| 520 | _aIt has been suggested that the cost of capital for a family firm depends on, among other things, a family effect, which deals with the family's relation to its business. Financial theory regarding the cost of capital states that the cost of capital is a market-based function of the characteristics of the investment, not the investor. This theory suggests that a firm's cost of capital does not depend on a family effect. However, not all financial economists' assumptions regarding the cost of capital hold for the family firm. This paper reviews the relevant literature regarding the cost of capital and applies it to the family firm. Knowing the correct cost of capital will enable family owner-managers to make better investment and financing decisions, evaluate performance, and structure rewards for performance. | ||
| 773 |
_aFamily Business Review _dDec |
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| 999 |
_c43614 _d43614 |
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