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Green innovation in family business succession: Exploring decision-making under parent-child co-governance

Author

Listed:
  • Wang, Kun
  • Huang, Min
  • Zhang, Le
  • Wang, Kun
  • Dong, Qiang

Abstract

This study investigates the impact of Parent-Child Co-Governance (PCCG) on green innovation within family businesses (FBs). Analysing Chinese A-share listed FBs from 2012 to 2020, we discover that PCCG FBs perform significantly worse in green innovation compared to non-PCCG FBs. Our findings indicate that FBs under PCCG encounter more substantial financing constraints and display lower risk preferences, both of which hinder green innovation. This study provides fresh insights into the strategic decision-making processes of FBs, particularly in the context of sustainable development. The results not only deepen our understanding of the PCCG model but also offer practical recommendations for FBs aiming to foster green innovation.

Suggested Citation

  • Wang, Kun & Huang, Min & Zhang, Le & Wang, Kun & Dong, Qiang, 2024. "Green innovation in family business succession: Exploring decision-making under parent-child co-governance," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324007906
    DOI: 10.1016/j.frl.2024.105760
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    References listed on IDEAS

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    Cited by:

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    2. Kun Wang & Yingkai Tang & Xiaohong Huang, 2026. "Keep Up With the Joneses: Founders and Family Business Philanthropy," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 35(1), pages 292-307, January.
    3. Zhao, Yali & Zhou, Ran & Pang, Liyuan, 2025. "Impact of family business identity on green innovation: The moderating role of family culture," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    4. Hong, Liming & Zhang, Changhong & Anwar, Sajid & Wang, Lijie, 2025. "Joint spousal ownership and corporate green innovation: Empirical evidence from family businesses listed on China's A-shares market," Economic Modelling, Elsevier, vol. 149(C).
    5. Wang, Liuming & Cheng, Chen & Mu, Jinghao, 2025. "Intergenerational succession and family business investment preference," Finance Research Letters, Elsevier, vol. 85(PA).
    6. Xiaoqing Dong & Guangshun Cheng & Yuan Ren, 2025. "Going Green on the Government’s Dime: Unpacking the Subsidy Boost in Family Firms," Sustainability, MDPI, vol. 17(10), pages 1-25, May.
    7. Alwakid, Wafa Naif & Dahri, Nisar Ahmed, 2025. "Harnessing AI capabilities and green entrepreneurial orientation for sustainable SME performance using SEM analysis approach," Technology in Society, Elsevier, vol. 83(C).

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    Keywords

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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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