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 financialisation, which has received limited attention in the 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 financialisation. Design/methodology/approach: Data were based on a sample of 7,023 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 financialisation, 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 strengthens the negative relationship between family firm succession and financialisation. 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. financialisation. The study further advances the understanding of family firm succession by considering the role of clan culture, the concentration of control and the stage of the succession process.
|Number of pages
|International Journal of Entrepreneurial Behavior & Research
|Early online date
|2 Oct 2023
|Published - 29 Nov 2023