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

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.