The relationship between leadership style and financial results: A study of small business owners in southeastern Ohio

The purpose of this study was to identify relationships between the leadership style of small business owners and the key financial ratios of current ratios, return on assets, and return on investment. The leadership styles were identified via the use of the "What's My Leadership Style?" (WMLS) assessment instrument. The independent variable of the study is the leadership style of the principal owner of small businesses. The three dependent variables are return on investment, return on assets, and current ratio. The leadership style was determined via the use of the "What's My Leadership Style?" instrument and the financial information was gleaned from secondary sources (financial statements supplied by participants and verified by their accounting firms or financial statements provided by the participant's accounting firm with permission). The study employed a descriptive, quantitative methodology. One-Factor Analysis of Variance statistical measures were used to identify the relationships between the four leadership styles and financial ratios. Participants of the study were principal owners of small businesses who have been in business more than two years and are located in southeastern Ohio. Participants were selected utilizing quota and convenience sampling.