Title: Types of governance, financial policy and the financial performance of micro-family-owned businesses in Canada

Authors: Amarjit Gill; Alan B. Flaschner; Susan Mann; Léo-Paul Dana

Addresses: The University of Saskatchewan, 25 Campus Drive, Saskatoon, SK, S7N 5A7, Canada ' Trident University International, 717 Cranmont Court, Simi Valley, California, 93065, USA ' University of Northwestern Ohio, 1441 Cable Road, Lima, Ohio, 45805, USA ' Montpellier Research in Management, Groupe Sup de Co Montpellier Business School, 2300 avenue des Moulins, Montpellier, France

Abstract: The purpose of this study is to examine the impact of type of governance on financial policy and financial performance of micro-family-owned businesses in Canada. This study utilised survey research (a non-experimental field study design). Micro-family-business owners from Western Canada were asked about their beliefs, perceptions and feelings regarding type of governance, financial policy and financial performance. The findings of this study indicate that type of governance positively impacts financial policy. The results also show that both type of governance and financial policy positively impact the financial performance of the micro-family-owned businesses in Canada. This study contributes to the literature on the factors that affect the financial performance of micro-family-owned businesses by showing that financial performance is affected by the joint impact of type of governance and financial policy, and that financial policies differ based on gender of the CEOs and length of stay of the CEOs in Canada. The findings may be useful for financial managers, family business owners, stakeholders, investors and family business management consultants.

Keywords: governance types; working capital management; debt policies; financial performance; firm size; Canada; financial policies; micro family firms; micro family businesses; CEOs gender; employment length; financial managers; family business owners; stakeholders; investors; consultants; microenterprises.

DOI: 10.1504/IJBG.2014.065435

International Journal of Business and Globalisation, 2014 Vol.13 No.4, pp.542 - 558

Published online: 24 Oct 2014 *

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