The Influence of Family Firm Succession on Financialisation : Evidence from China

Zhang, Lijie; Baranchenko, Yevhen; Lin, Zhibin; Ren, Li

Abstract

Purpose – This study seeks to fill a gap in the literature by examining the role of family firm succession in shaping the firm’s approach to financialisaton, which has received limited attention in previous research. In addition, the study explores the influence of factors such as clan culture, concentration of control, and generational differences on the relationship between succession and financialisaton.
Design/methodology/approach – Data were based on a sample of 7023 firm-year observations, compiled from the listed family firms in China’s A-share. Several Tobit models are used for analysing the data and testing the hypotheses.
Findings – Family firm succession is negatively related to the level of financialisaton, and this relationship is influenced by clan culture, concentration of control, and the stage of succession. Specifically, a higher clan culture, a greater concentration of ultimate control by the controlling family member, and the dominance of the first generation in management strengthen the negative relationship between family firm succession and financialisaton.
Originality/value - This study offers new insights into the consequence of family firm succession on a new area of the firm’s strategy, i.e. financialisaton. The study further advances our understanding of family firm succession by considering the role of clan culture, the concentration of control, and the stage of the succession process.

Citation

Zhang, L., Baranchenko, Y., Lin, Z., & Ren, L. (2023). The Influence of Family Firm Succession on Financialisation : Evidence from China. International Journal of Entrepreneurial Behavior & Research, 29(9/10), 2045-2064. https://doi.org/10.1108/IJEBR-10-2022-0908

• Journal Article Type: Article
• Acceptance Date: Sep 12, 2023
• Online Publication Date: Oct 2, 2023
• Publication Date: Nov 29, 2023
• Deposit Date: Sep 28, 2023
• Publicly Available Date: Oct 18, 2023
• Journal: International Journal of Entrepreneurial Behavior & Research
• Print ISSN: 1355-2554
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 29
• Issue: 9/10
• Pages: 2045-2064
• DOI: https://doi.org/10.1108/IJEBR-10-2022-0908
• Public URL: https://durham-repository.worktribe.com/output/1752033