Original scientific paper
https://doi.org/10.1080/1331677X.2022.2043763
Succession in family business and environmental investment: the moderating role of external environment
Baili Yang
Abraham Y. Nahm
Zengji Song
Abstract
After more than 40 years of opening the door to the outside
world, Chinese family firms have developed rapidly, but also
caused the problem of serious environmental pollution. The solution
to the problem stems inevitably from the innovation in environmental
protection technology. This means the environmental
investment of family firms determines whether the enterprise can
maintain sustainable development. However, Chinese family firms
have been going through a critical period of intergenerational succession.
This study aims to use the data of Chinese Shanghai and
Shenzhen A-share listed family firms from 2013 to 2020 to study
the relationship between intergenerational succession of family
enterprises and environmental protection investment. We also
examine the moderating role of the two different types of external
environment – the government and the market. The regression
results of the Tobit model of the full sample and subsample show
that succession has a significant positive impact on family business
environmental investment, and this impact is more significant
in companies whose successors have overseas experience.
Environmental regulation will strengthen the positive impact of
succession on corporate environmental investment, while market
competition will weaken it. Based on the findings, we also discuss
policy recommendations. These findings are of great significance
to the green and sustainable development of family firms.
Keywords
Succession; environmental investment; environmental regulation; market competition
Hrčak ID:
302960
URI
Publication date:
31.3.2023.
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