We develop a conceptual framework that combines the established concept of money scripts from financial psychology with the family-practice-fit framework. Through this integration, we analyze how family identity, values and maturity levels interact with financial decision-making. We examine four key financial decisions and their alignment with family characteristics through the lens of different money scripts.
This conceptual paper explores how business families’ collective attitudes toward money and wealth (money scripts) influence their financial business decisions. We examine the relationship between money scripts and four key financial decisions: ROE expectations, profit growth targets, capital structure and dividend policies. By integrating money scripts with the family-practice-fit framework, we investigate how family characteristics shape financial decision-making in family businesses.
Our analysis reveals that family businesses’ financial decisions often reflect their collective money scripts rather than purely rational economic considerations. These shared attitudes toward money can lead to financial choices that prioritize family values over conventional business logic. The framework demonstrates how misalignment between money scripts, family characteristics and financial decisions can create tensions affecting both family unity and business performance.
This paper pioneers the application of money scripts to family business research, offering a novel framework for understanding seemingly irrational financial decisions. It contributes to family business theory by expanding the family-practice-fit framework and provides practical guidance for business families and advisors in making financial decisions that align with family values while supporting business objectives.
