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The effect of family ownership and generation on financial literacy

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Abstract

The purpose of this article is to study the effect of family ownership and family generation on financial literacy. To do that, we have analysed a sample of 195 Spanish family businesses, reaching the conclusion that the level of family ownership exerts a negative influence on financial literacy. On the other hand, as family generations advance, financial literacy is favoured. This study benefits professionals and entrepreneurs, since they could, through a series of guidelines, improve financial literacy and, with it, the viability of their respective firms

Suggested Citation

  • Molina-García, Antonio & Florido-Ruiz, Belen & Campos Valenzuela, Marta & Diéguez-Soto, Julio, 2020. "The effect of family ownership and generation on financial literacy," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 4(1), pages 1-15, January.
    • Handle: RePEc:aaz:sbir01:v:4:y:2020:i:1:p:1-15
    DOI: 10.26784/sbir.v4i1.236
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    References listed on IDEAS

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    1. Chen, Haiyang & Volpe, Ronald P., 1998. "An Analysis of Personal Financial Literacy Among College Students," Financial Services Review, Elsevier, vol. 7(2), pages 107-128.
    2. Carter, E Eugene, 1973. "A Simultaneous Equation Approach to Financial Planning: Comment," Journal of Finance, American Finance Association, vol. 28(4), pages 1035-1038, September.
    3. Agrawal, Anup & Mandelker, Gershon N., 1990. "Large Shareholders and the Monitoring of Managers: The Case of Antitakeover Charter Amendments," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 25(2), pages 143-161, June.
    4. Jess H. Chua & James J. Chrisman & Lloyd P. Steier & Sabine B. Rau, 2012. "Sources of Heterogeneity in Family Firms: An Introduction," Entrepreneurship Theory and Practice, , vol. 36(6), pages 1103-1113, November.
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    Cited by:

    1. Antonio Molina-García & Julio Diéguez-Soto & M. Teresa Galache-Laza & Marta Campos-Valenzuela, 2023. "Financial literacy in SMEs: a bibliometric analysis and a systematic literature review of an emerging research field," Review of Managerial Science, Springer, vol. 17(3), pages 787-826, April.
    2. Antonio Duréndez & Julio Dieguez-Soto & Antonia Madrid-Guijarro, 2023. "The influence of CEO’s financial literacy on SMEs technological innovation: the mediating effects of MCS and risk-taking," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-26, December.

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    More about this item

    Keywords

    family business; financial literacy; family ownership; family generation;
    All these keywords.

    JEL classification:

    • A29 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Other
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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