The impact of the CEO's financial literacy on family SMEs' growth: the moderating role of generational stage

Diéguez‐Soto, Julio; Martínez‐Romero, María J.; Corten, Maarten; Michiels, Anneleen

doi:10.1108/bjm-01-2021-0003

Cited by 14 publications

(8 citation statements)

References 78 publications

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“…Since the sample of agri-food family firms we used in our study was collected as part of a more extensive project, it is likely that a selection bias might have happened. Similar to Beck and colleagues [72], we compared our sample firms, in terms of size and age with those of other family firm studies using Spanish family firms [73][74][75]. This comparison allowed us to demonstrate that our sample of family firms was similar in terms of age and size to that of the aforementioned studies, so there should not be any sample selection problem.…”

Section: Sample Datamentioning

confidence: 80%

Does the Female Presence in Corporate Governance Influence the Level of Indebtedness in Agri-Food Family Firms?

2021

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Family firms form the backbone of most of the world’s economies. While the issues surrounding family firms are diverse, gender diversity and its impact on the strategic and financial decisions of such firms is a topic that has generated significant debate in recent years. In particular, one of the most crucial unresolved questions is whether or not increasing the female presence in the family firms’ corporate governance bodies would be beneficial for improving their internal functioning. To shed new light on these issues, our study aims to examine the influence of gender diversity on the level of indebtedness of Spanish agri-food family firms. Specifically, and applying a risk-aversion perspective, the research goal is to analyse whether the female presence in corporate governance structures (board of directors, top management team and general shareholders’ meeting) influences the level of firm indebtedness. To test the suggested relationships, ordinary least square regression models were applied to a sample of 137 firms. The final sample was obtained by combining quantitative data from the SABI database and qualitative data from a survey conducted by the Spanish Institute of Family Firms and the Spanish Network of Family Business Chairs. This study reveals an inverse relationship of female presence in the board of directors, in the top management team, and in the general shareholders’ meeting on the level of indebtedness of Spanish agri-food family firms. In other words, the findings show that female presence in corporate governance structures contributes to enhanced business management behaviour and, thus, to a better utilisation of firms’ financing strategies. The obtained results have very important practical and social implications, insofar as they contribute to the building of a more inclusive and sustainable business world, aimed at reducing gender inequality at top positions in firms.

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Section: Sample Datamentioning

confidence: 80%

Does the Female Presence in Corporate Governance Influence the Level of Indebtedness in Agri-Food Family Firms?

2021

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“…Third, and related to the abovementioned considerations, the present study brings together the two highly relevant research fields of family firm and finance. In this regard, our study contributed to the scholarly debate about financial decisions in family firms, an area of research that has offered mixed and controversial results and which offers several promising research avenues (Michiels and Molly, 2017; Diéguez-Soto et al. , 2022).…”

Section: Discussionmentioning

confidence: 93%

Analysing the risk-return relationship in privately held firms: the contingent effect of being a family firm

Ramirez

Martínez-Victoria

Martínez‐Romero

2022

ARLA

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PurposeThe relationship between risk and return has been widely analysed in the scope of listed companies. However the present literature leaves uncovered an important study area with regards to privately held firms. In order to cover this gap, this study analyses the risk-return trade-off in the context of private enterprises. Furthermore, the authors incorporate the contingent effect of being a family firm on the abovementioned relationship.Design/methodology/approachUsing information from the SABI (Sistema de Análisis de Balances Ibéricos) database, a sample of 2,297 private manufacturing firms were analysed for the period of 2009–2016. So as to ascertain the proposed hypotheses, dynamic panel data methodology was applied. Specifically, the authors estimated the two-step general method of moments (GMM).FindingsThe obtained findings reveal that, according to prospect theory arguments, privately held firms adopt a conservative attitude toward risk when results are higher than a target level, while becoming risk seeking when results are lower than a target level. Moreover, the fact of being a family firm softens the risk-return relationship both when performance is above the target level and also when firms find themselves in the lowest performing case.Originality/valueThis article is, to the best of the authors' knowledge, one of the first studies dealing with the risk-return relationship in a privately held firm context. Moreover, the inclusion of being a family firm as a contingent factor in the abovementioned link is a complete novelty.

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“…The generational stage, which applies to the generation that controls and also manages the firm (Cruz & Nordqvist, 2012;Diéguez-Soto et al, 2022), represents an important source of heterogeneity in family firms' innovation decision-making (Eddleston et al, 2019). While family firms in first generational stage are run by the founder, family firms in second and later generational stages are managed by successive generations, distinguished by a more professional leadership style and a less "paternalistic" approach (Alayo et al, 2022).…”

Section: Moderating Role Of Generational Stagementioning

confidence: 99%

R&D COLLABORATION BREADTH AND FAMILY-FIRM INNOVATION EFFICIENCY: THE ROLE OF FAMILY MANAGEMENT AND GENERATIONAL STAGE

Martínez-Alonso

Martínez‐Romero

Ramirez

2023

Technological and Economic Development of Economy

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This paper examines the relationship between R&D collaboration breadth and innovation efficiency within family firms. Based on the socioemotional wealth approach and recognising that family firms constitute a rather heterogeneous group, we study family firms’ differences in the way of addressing the R&D collaboration breadth-innovation efficiency link, taking into account family management and the generational stage. Using a panel dataset of 424 manufacturing family firms during the 2007–2016 period, we find significant differences across family firms in the translation of gains from R&D collaboration breadth into innovation efficiency. Specifically, our findings reveal that family firms with higher levels of family management and in first generational stage weaken the R&D collaboration breadth – innovation efficiency link.

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The impact of the CEO's financial literacy on family SMEs' growth: the moderating role of generational stage

Cited by 14 publications

References 78 publications

Does the Female Presence in Corporate Governance Influence the Level of Indebtedness in Agri-Food Family Firms?

Does the Female Presence in Corporate Governance Influence the Level of Indebtedness in Agri-Food Family Firms?

Analysing the risk-return relationship in privately held firms: the contingent effect of being a family firm

R&D COLLABORATION BREADTH AND FAMILY-FIRM INNOVATION EFFICIENCY: THE ROLE OF FAMILY MANAGEMENT AND GENERATIONAL STAGE

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