Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/338490 
Year of Publication: 
2023
Citation: 
[Journal:] China Journal of Accounting Studies (CJAS) [ISSN:] 2169-7221 [Volume:] 11 [Issue:] 1 [Year:] 2023 [Pages:] 55-76
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
In recent years, the financial investment level of enterprises particularly family firms has increased rapidly. This phenomenon has drawn intense attention from both government regulators and academia. In this study, we argue that the second-generation succession is an important reason for family firms' preference for financial investment. Using 9,701 firm-year observations of Chinese family listed firms from 2007 to 2018, we find that the second-generation succession has a positive effect on financial investment in family firms, while successors with professional background have less preference for financial investment. Further, the positive effect exists mainly in both preparation and epistasis stages of second-generation succession. The number of family founders' children will enhance successors' preference for financial investment. Finally, financial investment especially long-term one reduces real investment, and damages future performance.
Subjects: 
Family firms
second generation succession
financial investment
professional background
number of children
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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