The Financial Performance of Family versus Non-Family Firms Operating in Nautical Tourism

Abstract

This article analyses the financial performance of family versus non-family firms operating in nautical tourism, in 2015–2019. The sample of 39 Portuguese companies was collected from the SABI database. We use a regression of financial performance, measured by three alternative proxies: return on assets, return on equity and operating profit margin, on liquidity, leverage, turnover of assets, asset structure, company size and age. The regressions are performed across Nuts II regions on mainland and across types of firms (family and non-family). The results uncover several patterns. First, family firms are larger and older, make higher investments and therefore are less liquid. Second, liquidity, leverage and investment in tangible assets impact negatively and significantly the corporate financial performance, while the turnover of assets, size and age impacts positively and significantly. Third, the sign of the impacts depends on the measure of performance. Finally, firms in the Northern region show superior performance, which can be explained by the higher share of family firms. These findings can serve as a roadmap for managers when selecting strategies to improve performance. Additionally, they will contribute to the understanding of tourism destination dynamics and competitiveness.

Does intellectual capital affect firm performance through financial policy?

“…This means that the higher the Financial Policy, the more likely it is to be able to significantly increase Firm Performance. The results of this analysis are in line with [17] proving that financial policy has a positive and significant effect on firm performance.…”

“…The relationship between financial policy and corporate financial performance has been a widely debated topic. [17] prove that financial policy has a positive and significant effect on firm performance. Furthermore, Optimal Financing Policy or Optimal Capital Structure theory explains the importance of having an optimal funding policy so that companies do not experience financial problems due to too much debt to improve firm performance [13]- [15] If the firm is in a low profit or even loss condition, it is better for the proportion of funding through equity to be higher because if it does not have cash flow, dividends can be postponed or not paid.…”

“…[16] shows that financial policy has a significant effect on financial performance. On the other hand, [17] proves that financial policy has no significant effect on financial performance. Based on the phenomena and research results that have been described previously, this article will explain the importance of financial policy as a mediation between corporate governance and intellectual capital on firm performance in pharmaceutical companies listed on the Indonesia Stock Exchange.…”

Mapeo científico de la investigación a nivel mundial sobre riqueza socioemocional y empresas familiares

“…De acuerdo con Godlewski y Le (2022), las empresa familiares están influenciadas por diversos factores, uno de esos factores es el impacto del costo de la financiación de la deuda, lo que da como resultado que las empresas familiares pagan un costo de deuda considerablemente más alto (margen del préstamo). Otro factor se evidencia en las empresas familiares que son más grandes y longevas, las cuales tienden a realizar mayores inversiones y, por lo tanto, son menos líquidas, dado que la inversión en activos tangibles y el apalancamiento afectan de manera negativa en el desempeño financiero, mientras que la longevidad y rotación de activos lo hacen de manera positiva y significativa (Santos et al, 2022).…”

Impact Analysis of Marinas on Nautical Tourism in Andalusia

“…Nautical tourism comprises all leisure activities that can be carried out in contact with water: sailing, motorboating, windsurfing, scuba diving, etc., [4][5][6][7].…”