The influence of family firm succession on financialisaton: evidence from China
基于中国A股上市家族企业数据，研究发现家族企业传承会降低金融化水平，且宗族文化、控制权集中度和代际差异会强化这一负向关系。
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.