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Can Family Involvement Improve Business Performance? Based on the Dual Moderating Effects of Overseas Experience and Charitable Donations

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  • Shuqin Song

    (Personnel Department, Jiangsu University, Zhenjiang 212013, China
    School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Mengyun Wu

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Yuqing Zhu

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Yihan Lv

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

Abstract

In the post-pandemic era, it will become normal for family enterprises to seek innovative development. They have become more committed to building socially responsible companies and are more willing to actively promote corporate values in order to create long-term benefits. Therefore, this paper uses listed family companies entering the intergenerational succession period from 2018 to 2020 as the research object and empirically tests the influence of family involvement on firm performance, as well as the moderating effects of family members’ overseas experiences and family firm’s charitable donation behaviors. The results show that the ownership and management involvement of family members can significantly improve the performance of family enterprises. The overseas experience of family members has a negative moderating effect on the relationship between the two, while the charitable giving behavior of family enterprises has a positive moderating effect on the relationship between the two. The above research provides countermeasures and reference for family enterprises to realize the family business and the lasting development in the process of intergenerational inheritance, upgrading, and transformation.

Suggested Citation

  • Shuqin Song & Mengyun Wu & Yuqing Zhu & Yihan Lv, 2022. "Can Family Involvement Improve Business Performance? Based on the Dual Moderating Effects of Overseas Experience and Charitable Donations," Sustainability, MDPI, vol. 14(23), pages 1-13, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:23:p:16141-:d:992130
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    References listed on IDEAS

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    1. Danny Miller & Isabelle Le Breton‐Miller & Richard H. Lester, 2010. "Family ownership and acquisition behavior in publicly‐traded companies," Strategic Management Journal, Wiley Blackwell, vol. 31(2), pages 201-223, February.
    2. G. T. Lumpkin & Keith H. Brigham, 2011. "Long–Term Orientation and Intertemporal Choice in Family Firms," Entrepreneurship Theory and Practice, , vol. 35(6), pages 1149-1169, November.
    3. Haijie Huang & Changjiang Lyu & Xiaowen Zhu, 2019. "Second generation involvement and corporate innovation: evidence from China," Nankai Business Review International, Emerald Group Publishing Limited, vol. 10(4), pages 526-545, December.
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