Survey of a Model for Capital Structure in Family-based Businesses (Covering Oil and Textile Industries)


1 M.A., Entrepreneurship Management, University of Tehran

2 Associate Professor Faculty of Geography, University of Tehran

3 M.A., Student Financial Management, University of Tehran


A limited series of studies on capital structure have been conducted on small-to-medium size enterprises (SMEs). Recent family-bases business literature suggests that these processes are influenced by firm owners’ attitudes toward the utility of debt as a form of financing. Other factors like culture, entrepreneurial characteristics, and prior experiences may also be involved. This study intends to present a model for family business financing and in view of the research conducted by ‎ Claudio A.Romono et al. This survey deals with textile and oil industries in Tehran. Almost 78 family businesses in textile industry and 80 family businesses in oil industry were identified. A sample of 88 firms from the two industries was investigated in our study.  If findings suggest that the firm size, family control, business planning, and business objectives are significantly associated with debt.