The paper examines how family ownership concentration affects the preferences of debt financing of manufacturing firms in India using Panel Data Regression with Instrumental Variable (IV) Estimation. The study utilizes high-level econometric analysis in R, using plm, ivreg and lm packages using data on 200 companies between the years 2010 and 2025. The outcomes also show that there is a strong positive correlation between the ownership concentration in the family and the favourable attitude to debt financing. The effects of governance structure on financial decisions are found to be more in family-controlled firms favoring debt financing over equity to retain control. The IV estimation model has proven to be concerned with endogeneity and has been used to prove the causal relationship between ownership concentration and debt financing preferences. The research offers important lessons to policy makers and financial institutions highlighting the need to put into consideration family ownership in formulation of financing strategies and regulatory policies in new markets such as India.
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