Family-owned Palestinian firms thrive financially with less debt, more profits.
The study looked at how family ownership affects the way companies in Palestine use debt. They used data from non-financial firms listed on the stock exchange from 2010 to 2018. Family-owned firms were found to have less debt, lower ownership concentration, and smaller size compared to non-family firms. However, they were more profitable. Family ownership had a negative impact on debt usage but a positive impact on market value of debt. This research is the first to focus on how family ownership influences a company's capital structure in Palestine.