Cash holdings and economic performance: the role of socioemotional wealth in distinguishing between family and non-family firms

Authors

  • Manuela Gonçalves Barros Federal University of Mato Grosso https://orcid.org/0000-0003-0325-8106
  • César Augusto Tibúrcio Silva University of Brasília (UnB)

DOI:

https://doi.org/10.17524/repec.v20.e3721

Keywords:

Cash holdings, Return on assets (ROA), Family firms, Socioemotional wealth, Family control and influence

Abstract

Objective: This study analyzes the relationship between  cash holdings and firm performance (ROA), comparing  family and non-family firms from the perspective of  Socioemotional Wealth (SEW), with a focus on the distinct  effects of extended SEW in family firms. It also assesses the  moderating roles of the “family control and influence” (FCI)  dimension and high indebtedness.

Method: The analysis adopts a mixed-gamble framework,  conceptualizing cash holding decisions as trade-offs  between potential gains and losses, and uses regression  models with non-linear specifications over the 2010–2019  period. The sample comprises 183 firms listed on B3,  classified as family and non-family firms.

Results: The findings indicate a positive linear relationship  between cash holdings and performance in family firms,  whereas a non-linear inverted U-shaped relationship is  observed in both the full sample and non-family firms.  Additionally, higher levels of FCI strengthen the positive  effects of cash holdings on performance in family firms,  consistent with the view that FCI promotes greater  alignment between financial and socioemotional objectives. High indebtedness, on the other hand, did not show  statistical significance in the investigated relationship. 

Practical and Social Implications: The findings suggest  that family involvement in top-level governance can  function as an effective mechanism in financial decision- making, contributing to improved firm performance. This  effect appears to be stronger in contexts characterized by  high levels of FCI, where closer alignment between  financial  and socioemotional objectives enhances the  benefits of cash holdings in family firms.

Translations of this article

Author Biographies

Manuela Gonçalves Barros, Federal University of Mato Grosso

Manuela Gonçalves Barros holds a Ph.D. in Accounting from the University of Brasília (UnB), a Master’s degree in Controllership and Accounting from the University of São Paulo (USP), and a Bachelor's degree in Accounting from the Federal University of Goiás (UFG). Since 2018, she has been an Assistant Professor at the Federal University of Mato Grosso (UFMT), in the Department of Accounting at the School of Business and Accounting. Previously, she held a tenured faculty position, obtained through a public competitive examination, in the Accounting program at the University of Rio Verde (UniRV), and also worked as a contracted lecturer at the Alves Faria University Center. Her main areas of teaching and research are Financial Accounting and Corporate Finance.

César Augusto Tibúrcio Silva, University of Brasília (UnB)

César Augusto Tibúrcio Silva holds a degree in Business Administration from the University of Brasília (1983) and in Accounting from Unieuro (2006). He completed a master's degree in Business Administration at the University of Brasília (1988) and a doctorate in Controllership and Accounting at the University of São Paulo (1996). He is a professor at the University of Brasília, where he teaches undergraduate, master's, and doctoral courses in Accounting (PPGCont). He also collaborates as a professor in the master's program at the Federal University of Rio Grande do Norte (UFRN).Throughout his career, he has held various administrative roles, such as course coordinator, department head, and director of the FACE/UnB, in addition to serving as Dean of Planning and Budget at the University of Brasília. He is currently the coordinator of PPGCont.He is dedicated to academic production, with publications in books, articles, and conferences, and serves as a reviewer and member of editorial boards in academic journals. In 2021, he was recognized by Anpcont and included in the "Hall of Fame," an honor that reflects his contributions to the accounting field. 

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Published

2026-05-27

How to Cite

Barros, M. G., & Silva, C. A. T. (2026). Cash holdings and economic performance: the role of socioemotional wealth in distinguishing between family and non-family firms. Journal of Education and Research in Accounting (REPeC), 20. https://doi.org/10.17524/repec.v20.e3721

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Vol. 20 (2026): Continuous Publication

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