Title: Financial policy and the value of family businesses in Canada

Authors: Amarjit Gill

Addresses: The University of Saskatchewan, Edwards School of Business, 25 Campus Drive, Saskatoon, SK, S7N-5A7, Canada

Abstract: This study examines the impact of financial policy on the market value of family businesses in Canada. Family business owners from Western Canada were surveyed to gather information. This study utilised survey research (a non-experimental field study design). Subjects were asked about their beliefs, perceptions, and feelings regarding financial policy and the market value of their family businesses. Overall findings indicate that the increase in the market value of family businesses is positively associated with liquidity policy, working capital management policy, debt policy, potential growth, gender, education, and industry. The perceptions related to the impact of financial policy on the value of family businesses differ based on gender and industry. The findings may be useful for family business owners, stakeholders, investors, and family/small business management consultants.

Keywords: liquidity policy; working capital management policy; debt policy; firm size; potential growth; family businesses; business performance; firm value; Canada; firm performance; financial policy; market value; family firms.

DOI: 10.1504/IJESB.2013.056892

International Journal of Entrepreneurship and Small Business, 2013 Vol.20 No.3, pp.310 - 325

Published online: 30 Apr 2014 *

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