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Family business origin and artificial intelligence investment: The mediating role of long-term orientation

Author

Listed:
  • Zhang, Ruichen
  • Zhou, Guochen
  • Pu, Yijia
  • Wen, Lei

Abstract

Chinese family businesses exhibit sharp differences in terms of their historical origins. Existing studies show that such differences significantly affect firms’ investment decisions. Using data on 2808 Chinese family firms from 2010 to 2023, we find that entrepreneurial family firms (EFFs) founded directly by entrepreneurs allocate significantly higher levels of AI investment than restructured family firms (RFFs) converted from state-owned enterprises. Mechanism tests demonstrate that EFFs have a stronger long-term orientation, driving their higher levels of AI investment. For non-high-tech enterprises, those without overseas businesses, and those with high family control, this effect is more pronounced. This study is of great significance for understanding how the institutional environments during the founding phase of family businesses influence the firms’ subsequent behavioral decisions.

Suggested Citation

  • Zhang, Ruichen & Zhou, Guochen & Pu, Yijia & Wen, Lei, 2025. "Family business origin and artificial intelligence investment: The mediating role of long-term orientation," Finance Research Letters, Elsevier, vol. 86(PG).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pg:s1544612325021130
    DOI: 10.1016/j.frl.2025.108860
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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