Generational Differences of Family Businesses in MENA Countries: Impact on Indebtedness

(Pages 1232-1239)

Oumaima Quiddi* and Badr Habba
Chair of Moroccan Family Businesses, ESCA Ecole de Management, Casablanca, Morocco, Lot 67-3, Finance City (CFC, Bd de l'Aéropostale, Casablanca 20250.


The purpose of this paper is to examine the differences and/or similarities in the determinants of capital structure between first-generation family businesses and their counterparts of second- generation and beyond. A quantitative analysis was conducted using panel data (2011- 2019) from two sub-samples (103 first-generation family businesses and 82 family businesses of second-generation and beyond). Regression tests were conducted on the debt ratio for both categories of firms, using some independent variables (previous debt ratio, ROA, ROE, business risk, growth, liquidity, cash flows, tangibility, firm size, and firm age). Broadly, findings support the theory of pecking order and reveal significant differences in the level of indebtedness and its determinants between the two categories of firms.


Debt, Family firm, Generation, Panel data, Succession.

How to Cite:

Oumaima Quiddi and Badr Habba. Generational Differences of Family Businesses in MENA Countries: Impact on Indebtedness. [ref]: vol.21.2023. available at:

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