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

Lijie Zhang; Yevhen Baranchenko; Zhibin Lin; Li Ren

doi:10.1108/ijebr-10-2022-0908

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

Lijie Zhang, Yevhen Baranchenko^*, Zhibin Lin, Li Ren

^*Corresponding author for this work

Entrepreneurship, Innovation and Strategy

Research output: Contribution to journal › Article › peer-review

Abstract

Purpose (limit 100 words) 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 (limit 100 words) 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 (limit 100 words) Family firm succession is negatively related to the level of financialization, 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 financialization. Research limitations/implications (limit 100 words) 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 (limit 100 words) 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.

Original language	English
Pages (from-to)	1-20
Number of pages	20
Journal	International Journal of Entrepreneurial Behavior & Research
Early online date	2 Oct 2023
DOIs	https://doi.org/10.1108/ijebr-10-2022-0908
Publication status	E-pub ahead of print - 2 Oct 2023

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Cite this

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title = "The Influence of Family Firm Succession on Financialisation: Evidence from China",

abstract = "Purpose (limit 100 words) This study seeks to fill a gap in the literature by examining the role of family firm succession in shaping the firm{\textquoteright}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 (limit 100 words) Data were based on a sample of 7023 firm-year observations, compiled from the listed family firms in China{\textquoteright}s A-share. Several Tobit models are used for analysing the data and testing the hypotheses. Findings (limit 100 words) Family firm succession is negatively related to the level of financialization, 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 financialization. Research limitations/implications (limit 100 words) 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 (limit 100 words) This study offers new insights into the consequence of family firm succession on a new area of the firm{\textquoteright}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.",

author = "Lijie Zhang and Yevhen Baranchenko and Zhibin Lin and Li Ren",

year = "2023",

month = oct,

day = "2",

doi = "10.1108/ijebr-10-2022-0908",

language = "English",

pages = "1--20",

journal = "International Journal of Entrepreneurial Behavior & Research",

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TY - JOUR

T1 - The Influence of Family Firm Succession on Financialisation

T2 - Evidence from China

AU - Zhang, Lijie

AU - Baranchenko, Yevhen

AU - Lin, Zhibin

AU - Ren, Li

PY - 2023/10/2

Y1 - 2023/10/2

N2 - Purpose (limit 100 words) 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 (limit 100 words) 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 (limit 100 words) Family firm succession is negatively related to the level of financialization, 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 financialization. Research limitations/implications (limit 100 words) 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 (limit 100 words) 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.

AB - Purpose (limit 100 words) 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 (limit 100 words) 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 (limit 100 words) Family firm succession is negatively related to the level of financialization, 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 financialization. Research limitations/implications (limit 100 words) 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 (limit 100 words) 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.

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DO - 10.1108/ijebr-10-2022-0908

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JO - International Journal of Entrepreneurial Behavior & Research

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