IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v103y2025ics1057521925003254.html
   My bibliography  Save this article

How family control affects the sustainable development of enterprises: An analysis of the actual controllers' characteristics

Author

Listed:
  • Gu, Wentao
  • Mo, Wanting

Abstract

Studying sustainable performance based on environmental, social, and corporate governance dimensions is essential for family firms to improve their competitiveness and address emerging challenges. This study uses data from China-listed family businesses from 2015 to 2021 to explore the effects of the controller's ownership and kinship characteristics on the sustainable development of family businesses. The empirical findings indicate that ownership negatively affects the sustainable development of family businesses, whereas kinship between controllers and founders promotes green sustainability. Furthermore, kinship enhances sustainable development by increasing extended socio-emotional wealth (ESEW). When family control is behind the scenes, ownership reduces ESEW, thus decreasing firm sustainability. Additionally, overseas study backgrounds and second-generation involvement strengthen the positive impact of kinship on sustainable development, while second-generation involvement positively moderates the negative impact of ownership on sustainability. The main results remain robust through endogeneity and robustness tests. This study also provides recommendations for family businesses to facilitate their sustainable development.

Suggested Citation

  • Gu, Wentao & Mo, Wanting, 2025. "How family control affects the sustainable development of enterprises: An analysis of the actual controllers' characteristics," International Review of Financial Analysis, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:finana:v:103:y:2025:i:c:s1057521925003254
    DOI: 10.1016/j.irfa.2025.104238
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521925003254
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2025.104238?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:103:y:2025:i:c:s1057521925003254. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.