This study helps to explain why intra-family equity dispersion shapes the capital structure of family firms. Drawing on the socio-emotional wealth (SEW) literature, we argue that debt levels are contingent on the degree of ownership dispersion among family members. Based on a sample of 2.451 observations, in a ten-year time frame, our results reveal the existence of an inverted U-shape relationship between debt level and intra-family ownership dispersion. Moreover, we find that these findings are moderated by the generational involvement: the relationship is inverted in later generations.
Key-Words: Imprenditorialità e Family Business, Family ownership dispersion, intergenerational involvement, SEW, debt level
