The impact of the CEO's financial literacy on family SMEs' growth: the moderating role of generational stage
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 so...
| Main Authors: | , , , |
|---|---|
| Format: | info:eu-repo/semantics/article |
| Language: | English |
| Published: |
Emerald
2023
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/10835/14918 |
| _version_ | 1789406317995098112 |
|---|---|
| author | Diéguez Soto, Julio Martínez Romero, María José Corten, Maarten Michiels, Anneleen |
| author_facet | Diéguez Soto, Julio Martínez Romero, María José Corten, Maarten Michiels, Anneleen |
| author_sort | Diéguez Soto, Julio |
| collection | DSpace |
| description | 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 do not always use their financial literacy to its full potential to foster growth. More specifically, the extent to which financial literacy leads to firm growth is found to be conditional on the generational stage of the family SME. The obtained findings are valuable for family SMEs intending to hire a new CEO, encouraging the financial literacy of the current CEO, and educating the next generation of family members. |
| format | info:eu-repo/semantics/article |
| id | oai:repositorio.ual.es:10835-14918 |
| institution | Universidad de Cuenca |
| language | English |
| publishDate | 2023 |
| publisher | Emerald |
| record_format | dspace |
| spelling | oai:repositorio.ual.es:10835-149182023-12-22T11:25:15Z The impact of the CEO's financial literacy on family SMEs' growth: the moderating role of generational stage Diéguez Soto, Julio Martínez Romero, María José Corten, Maarten Michiels, Anneleen Financial Literacy Family Firms Growth Generational Stage 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 do not always use their financial literacy to its full potential to foster growth. More specifically, the extent to which financial literacy leads to firm growth is found to be conditional on the generational stage of the family SME. The obtained findings are valuable for family SMEs intending to hire a new CEO, encouraging the financial literacy of the current CEO, and educating the next generation of family members. 2023-12-22T11:25:15Z 2023-12-22T11:25:15Z 2022 info:eu-repo/semantics/article Diéguez-Soto, J., Martínez-Romero, M.J., Corten, M. and Michiels, A. (2022). The impact of the CEO's financial literacy on family SMEs' growth: the moderating role of generational stage. Baltic Journal of Management, Vol. 17 No. 1, pp. 89-106 http://hdl.handle.net/10835/14918 10.1108/BJM-01-2021-0003 en https://www.emerald.com/insight/content/doi/10.1108/BJM-01-2021-0003/full/html Attribution-NonCommercial-NoDerivatives 4.0 Internacional http://creativecommons.org/licenses/by-nc-nd/4.0/ info:eu-repo/semantics/openAccess Emerald |
| spellingShingle | Financial Literacy Family Firms Growth Generational Stage Diéguez Soto, Julio Martínez Romero, María José Corten, Maarten Michiels, Anneleen The impact of the CEO's financial literacy on family SMEs' growth: the moderating role of generational stage |
| title | The impact of the CEO's financial literacy on family SMEs' growth: the moderating role of generational stage |
| title_full | The impact of the CEO's financial literacy on family SMEs' growth: the moderating role of generational stage |
| title_fullStr | The impact of the CEO's financial literacy on family SMEs' growth: the moderating role of generational stage |
| title_full_unstemmed | The impact of the CEO's financial literacy on family SMEs' growth: the moderating role of generational stage |
| title_short | The impact of the CEO's financial literacy on family SMEs' growth: the moderating role of generational stage |
| title_sort | impact of the ceo's financial literacy on family smes' growth: the moderating role of generational stage |
| topic | Financial Literacy Family Firms Growth Generational Stage |
| url | http://hdl.handle.net/10835/14918 |
| work_keys_str_mv | AT dieguezsotojulio theimpactoftheceosfinancialliteracyonfamilysmesgrowththemoderatingroleofgenerationalstage AT martinezromeromariajose theimpactoftheceosfinancialliteracyonfamilysmesgrowththemoderatingroleofgenerationalstage AT cortenmaarten theimpactoftheceosfinancialliteracyonfamilysmesgrowththemoderatingroleofgenerationalstage AT michielsanneleen theimpactoftheceosfinancialliteracyonfamilysmesgrowththemoderatingroleofgenerationalstage AT dieguezsotojulio impactoftheceosfinancialliteracyonfamilysmesgrowththemoderatingroleofgenerationalstage AT martinezromeromariajose impactoftheceosfinancialliteracyonfamilysmesgrowththemoderatingroleofgenerationalstage AT cortenmaarten impactoftheceosfinancialliteracyonfamilysmesgrowththemoderatingroleofgenerationalstage AT michielsanneleen impactoftheceosfinancialliteracyonfamilysmesgrowththemoderatingroleofgenerationalstage |