Intergenerational succession and corporate philanthropy: A stakeholder perspective

Zhang, Lijie; Lin, Zhibin; Huang, Wei; Djafarova, Elmira; and Ren, Li

Abstract

Purpose
Based on stakeholder theory, this study aims to examine the impact of family firm succession on corporate philanthropy while considering the potential role of the clan cultural context, industry context, and the stage of succession.

Design/methodology/approach
Data were based on a sample of 7,502 firm-year observations from listed family firms in China’s A-share markets between 2007 and 2018. Several Tobit models are used for analysing the data. Difference-in-difference regression method and propensity score matching method are used for robustness tests.

Findings
Family firms undergoing succession tend to spend more on corporate philanthropy compared to non-succession counterparts. This effect is more pronounced among polluting industry firms and weaker in regions with strong clan cultures and after the process of succession is complete.

Originality/value
This study sheds new light on the relationship between inter-generational succession and corporate philanthropy. By considering the moderating effect of the clan cultural context, industry context, and the stage of succession, this study further advances the understanding of the role of corporate philanthropy in managing family firm succession.

Citation

Zhang, L., Lin, Z., Huang, W., Djafarova, E., & and Ren, L. (2024). Intergenerational succession and corporate philanthropy: A stakeholder perspective. International Journal of Entrepreneurial Behavior & Research, 30(10), 2652-2673. https://doi.org/10.1108/IJEBR-11-2023-1181

• Journal Article Type: Article
• Acceptance Date: Jul 18, 2024
• Online Publication Date: Aug 13, 2024
• Publication Date: Nov 20, 2024
• Deposit Date: Aug 14, 2024
• Publicly Available Date: Aug 14, 2024
• Journal: International Journal of Entrepreneurial Behavior & Research
• Print ISSN: 1355-2554
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 30
• Issue: 10
• Pages: 2652-2673
• DOI: https://doi.org/10.1108/IJEBR-11-2023-1181
• Public URL: https://durham-repository.worktribe.com/output/2753916