Abstract

This thesis investigates how ownership structure influences capital structure decisions and firm performance in Swedish publicly listed companies between 2014 and 2023. Building upon a growing body of family business research, the study addresses three core questions: (1) the impact of family involvement on performance, measured by Return on Assets (ROA) and Tobin’s Q; (2) differences in leverage choices between family and non-family firms; and (3) whether the leverage–performance relationship varies by ownership type.

Family firms are identified using multiple criteria from different research, ensuring robust classification. Data on ownership, governance, financial statements, and market valuations with a sample comprising 426 firms (141 family and 285 non-family) across diverse sectors. Employing panel data regression models, the analysis controls for industry effects, firm size, and economic conditions.

Empirical results indicate that Swedish family firms exhibit higher debt-to-asset ratios than non-family counterparts and achieve superior accounting performance (ROA) while showing comparable market valuations (Tobin’s Q). Moreover, because capital structure is largely endogenous, any discussion of its implications for performance in non-family firms should be interpreted with caution. 

These findings contribute to the literature by providing evidence from the underexplored Swedish context, highlighting how institutional environments and socioemotional wealth considerations shape financing choices and governance dynamics in family enterprises.