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Is Working with Your Spouse Good for Business? The Effect of Working with Your Spouse on Profit for Rural Businesses

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Listed:
  • Tia Michelle McDonald

    (Ohio University)

  • Maria I. Marshall

    (Purdue University)

  • Michael S. Delgado

    (Purdue University)

Abstract

The goal of this article is to uncover more precise and unbiased estimates of the relationships between relationship satisfaction, a copreneurial business structure, and profit. Because of the suspected simultaneity between profit levels, the choice to be copreneurial and relationship satisfaction, a multivariate recursive probit is used to test for endogeneity between these variables. The results of the empirical analysis suggest that spouses self-select into a copreneurial business structure depending on the level of satisfaction they feel in their interpersonal relationships. Additionally, copreneurial businesses with high relationship satisfaction are more likely to have higher profit than if they were non-copreneurial.

Suggested Citation

  • Tia Michelle McDonald & Maria I. Marshall & Michael S. Delgado, 2017. "Is Working with Your Spouse Good for Business? The Effect of Working with Your Spouse on Profit for Rural Businesses," Journal of Family and Economic Issues, Springer, vol. 38(4), pages 477-493, December.
    • Handle: RePEc:kap:jfamec:v:38:y:2017:i:4:d:10.1007_s10834-017-9525-8
    DOI: 10.1007/s10834-017-9525-8
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    Cited by:

    1. George Haynes & Maria Marshall & Yoon Lee & Virginia Zuiker & Cynthia R. Jasper & Sandra Sydnor & Corinne Valdivia & Diane Masuo & Linda Niehm & Renee Wiatt, 2021. "Family business research: Reviewing the past, contemplating the future," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 70-83, July.
    2. Aliaa El Shoubaki & Jörn Block & Frank Lasch, 2022. "The couple business as a unique form of business: a review of the empirical evidence," Management Review Quarterly, Springer, vol. 72(1), pages 115-147, February.
    3. Yoon G. Lee & Heather H. Kelley & Renee Wiatt & Maria I. Marshall, 2024. "Work-Family Balance and Perceived Business Outcomes among Copreneurial and Noncopreneurial Small Business Owners," Journal of Family and Economic Issues, Springer, vol. 45(1), pages 200-211, March.

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