Financial reporting data plays a pivotal role in the analysis of family businesses. A crucial aspect of economic success is the association between the age of the owner, the timing of ownership transitions, and financial performance. The conceptualization of a family business is also constrained by limitations in data availability. The objective of this paper is to examine the factors and their relationships associated with financial performance and the associations related to ownership generations and transfer timing. The present study utilizes partial least squares structural equation modeling (PLS-SEM). The analysis is based on the financial reporting data of family firms in food industry. In the analyses, one-owner and multi-owner family businesses are analyzed separately, with the purpose of creating two models. The two models that demonstrate the greatest model fit (one owner: NFI: 0.775, SRMR: 0.078; multi owner: NFI: 0.809, SRMR: 0.066), exhibit remarkably similar structures. This finding suggests that economic performance is associated with growth potential and financial structure in both cases. The findings indicate that for one-owner family businesses, generational turnover is more uncertain. These businesses are more frequently associated with high growth potential, which may be linked to higher firm value. The findings of the study provide useful insights, despite the limitations imposed by the one-year duration of the study, the presence of the food industry, and the exclusions that were made. To support more informed decision-making in the future, further longitudinal studies are recommended for policymakers in this area.
Tamás Vinkóczi (Tue,) studied this question.