The impact of the CEO's financial literacy on family SMEs' growth: the moderating role of generational stage
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2022Abstract
Purpose- This study investigates the impact of the CEO’s financial literacy on family SMEs’ growth, as well as the moderating role of the generational stage on this relationship.
Design/methodology/approach – The study is based on survey data of Spanish private family firms and utilizes a second source of data, the SABI database by Bureau Van Dijk. The authors run ordinary least squares regressions and use both the base and the partition approaches to test the hypotheses.
Findings – The analysis reveals a positive association between the CEO’s financial literacy and firm growth. However, this relationship is not uniform across generations. The CEO’s financial literacy-firm growth relationship becomes weaker for first- and third or subsequent- generation family firms while becoming stronger for second- generation family firms.
Originality/value – This study adds the financial literacy of the CEO as a novel individual-level determinant of family firm growth. It also shows that CEOs d...
Palabra/s clave
Financial Literacy
Family Firms
Growth
Generational Stage