Financial culture in family firms

Previous studies have shown that family businesses are different from non-family firms, since family firms have particular characteristics due to the relationship between the family and the business, that give place to a unique culture. In that sense, the identification of a peculiar financial structure and financial preferences in the case of family businesses leads us to research on the existence of a different financial culture. With this aim, we have conducted a cross-sectional analysis using a survey with a representative sample of 837 companies. The results confirm that the character of the company is a distinguishing factor of financial culture. We have found that family firms present a lesser degree of financial culture than non-family firms. Furthermore, family firms rely to a lesser extent than non-family firms in the decisions of their financial managers, personnel is less skilled regarding alternative financial sources and the importance they concede to financial management training is also lower.