Capital structure
socioemotional wealth
performance below aspiration
family ownership

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This article explores effect of family socioemotional wealth on capital structure, especially in the situation that the company is in a difficult or loss situation.  Relation between ownership (family) and cap.struc has been a leading research focus around the world for more than twenty years. However, existing empirical evidences on the relation b.t ownership (family) and cap.struc have been inconclusive. According to B.A theory, family owners preserve their socioemotional wealth by maintaining control of the firms. The more socioemotional wealth they have, the more effort they put to reduce firm control (risk-losing), thereby limiting the dilution of ownership status by increasing the capital structure. In order to explain the differences of the previous empirical evidences, this article applies a B.A approach to investigate effect of family socioemotional wealth – the most vital dimensions of ownership (family) - on cap.struc, with data from 390 companies listed in Vietnam from 2010 to 2020. the regression results show that family socioemotional wealth has a positive impact on capital structure, but with the existences of performance below aspiration, family socioemotional wealth have a negative impact on capital structure. The results of the study contributes to cap.struc literature by explaining the difference between the capital structure of the family firms compared to the non-family firms according to socioemotional wealth and performance below aspiration. With these results, this paper has contribution in applying B.A model to interprete the I.F.O on capital structure



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