Keeping it in the family: financial constraints and the succession intention of micro and small enterprises in China
利用中国全国代表性调查数据，研究发现金融约束越强，微型和小型企业主越倾向于将企业传给下一代，尤其当企业主金融素养较低或所在地区金融市场欠发达时。
Despite the significance of business succession in the family firm literature, few studies have paid attention to the role of financial constraints, a common feature of micro and small firms, in entrepreneurs’ succession intention. Using a nationally representative survey of micro and small firms in China, we find that a higher degree of financial constraints significantly strengthens the entrepreneur’s intention of passing the firm on to the next generation. Moreover, the effect of financial constraints works particularly for firms whose entrepreneurs possess lower levels of financial literacy and for firms in regions with less-developed financial markets. Our results still hold after addressing potential endogeneity problems and conducting a wide array of robustness checks.