Abstract
Lenders often are faced with the challenge of evaluating the financial success of a business or a proposed business by examining the financial records of the household, reasoning that an assessment of the household's financial position should be a plausible indicator of the financial status of the business. Utilizing data from the recently released Family Business Survey, this study uses financial information about both the family and the business to examine the relationship between household financial indicators and business financial indicators for women- and men-owned family businesses. The results suggest that, while household financial statements may be good indicators for men-owned businesses, they appear to be much less reliable for women-owned businesses.
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Haynes, G.W., Rowe, B.R., Walker, R. et al. The Differences in Financial Structure Between Women- and Men-Owned Family Businesses. Journal of Family and Economic Issues 21, 209–226 (2000). https://doi.org/10.1023/A:1009481200806
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DOI: https://doi.org/10.1023/A:1009481200806