The effect of family ownership and generation on financial literacy

Abstract

The purpose of this article is to study the effect of family ownership and family generation on financial literacy. To do that, we have analysed a sample of 195 Spanish family businesses, reaching the conclusion that the level of family ownership exerts a negative influence on financial literacy. On the other hand, as family generations advance, financial literacy is favoured. This study benefits professionals and entrepreneurs, since they could, through a series of guidelines, improve financial literacy and, with it, the viability of their respective firms