The Influence of Family Ownership on Budgeting Practices in Czech Firms

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F46747885%3A24310%2F24%3A00013092" target="_blank" >RIV/46747885:24310/24:00013092 - isvavai.cz</a>

Result on the web

<a href="https://aak.slu.cz/getrevsrc.php?identification=673895466902f&mag=aak&raid=135&type=art&ver=2" target="_blank" >https://aak.slu.cz/getrevsrc.php?identification=673895466902f&mag=aak&raid=135&type=art&ver=2</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.25142/aak.2024.012" target="_blank" >10.25142/aak.2024.012</a>

Result language

angličtina

Original language name

The Influence of Family Ownership on Budgeting Practices in Czech Firms

Original language description

The financial decision-making processes in family-owned enterprises have become a prominent subject due to the notable influence these businesses exert on national economies. This article seeks to identify and compare the standard budgeting practices of family and non-family firms within the Czech Republic, addressing a considerable gap in research and empirical confirmation concerning family businesses. While no significant differences were found in most financial management tools, the study identified differences in budgeting instruments, particularly in preparing income statements and budget monitoring and control frequency. Family businesses tend to involve owners in budget preparation, whereas non-family firms delegate this task to financial departments. Despite the lack of statistical significance in many areas, the study suggests that family businesses may face unique challenges in financial management due to factors like family dynamics and succession planning. Traditional budgeting methods remain dominant, with minimal adoption of modern approaches such as activity-based or flexible budgeting. To accomplish this objective, the study employs statistical analysis to identify potential familial impacts on different budgeting facets. The empirical research has been conducted through a questionnaire survey. Overall, the study provides valuable insights into the budgeting principles employed by Czech family businesses, encompassing the influence of family involvement, traditional budgeting criticism, ownership structure, financial decision-making, and business stability.

Czech name

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Czech description

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Type

J_ost - Miscellaneous article in a specialist periodical

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Acta academica karviniensia

ISSN

2533-7610

e-ISSN

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Volume of the periodical

24

Issue of the periodical within the volume

2

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

16

Pages from-to

68-83

UT code for WoS article

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EID of the result in the Scopus database

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