This study aims to investigate how the migrant background of family owners influences the financing decisions of family firms in three Association of Southeast Asian Nations (ASEAN) countries: Thailand, Malaysia and Singapore, specifically focusing on debt and working capital structures.
Using a hand-collected dataset of 1,301 listed firms from 2010 to 2022, the study employs panel regressions to analyze the effects of family ownership and migrant status of family owners on firms’ financial decisions, controlling for various firm-specific factors.
The study finds that family firms in ASEAN countries generally maintain lower debt ratios and higher working capital ratios than non-family firms. The migrant background of family owners further amplifies these conservative financial behaviors, with migrant family firms, on average, exhibiting 7.4% lower debt ratios and 5.4% higher working capital ratios than non-family firms.
The findings provide insights for firm managers, investors and policymakers on how to better support migrant family firms through tailored financial strategies, investment evaluations, and policies that promote financial inclusion and economic growth.
This research fills a gap in literature by focusing on migrant-owned family firms in the ASEAN area, a region in which family firms are prevalent but understudied. It highlights these firms’ unique financial decision-making patterns, driven by heightened risk aversion and information asymmetry due to migrant ownership.
