IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2501.16793.html
   My bibliography  Save this paper

Considerations on the use of financial ratios in the study of family businesses

Author

Listed:
  • Ge`orgia Escaram'is

    (Universitat de Girona, Research Group on Statistics, Econometrics and Health)

  • Anna Arbuss`a

    (Universitat de Girona)

Abstract

Most empirical works that study the financing decisions of family businesses use financial ratios. These data present asymmetry, non-normality, non-linearity and even dependence on the results of the choice of which accounting figure goes to the numerator and denominator of the ratio. This article uses compositional data analysis (CoDa) as well as classical analysis strategies to compare the structure of balance sheet liabilities between family and non-family businesses, showing the sensitivity of the results to the methodology used. The results prove the need to use appropriate methodologies to advance the academic discipline.

Suggested Citation

  • Ge`orgia Escaram'is & Anna Arbuss`a, 2025. "Considerations on the use of financial ratios in the study of family businesses," Papers 2501.16793, arXiv.org.
    • Handle: RePEc:arx:papers:2501.16793
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2501.16793
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marcel R. Sieber, 2024. "Organizational Culture and Business-IT Alignment: A Compositional Study," SAGE Open, , vol. 14(4), pages 21582440241, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      More about this item

      NEP fields

      This paper has been announced in the following NEP Reports:

      Statistics

      Access and download statistics

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2501.16793. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.