Non-family shareholder governance and green innovation of family firms: A socio-emotional wealth theory perspective

Shanzhong Du and June Cao

International Review of Financial Analysis, 2023, vol. 90, issue C

Abstract: We draw on socio-emotional wealth (SEW) theory to investigate the influence of non-family shareholder governance (NFSG) on green innovation in family firms. We find that non-family shareholder holding has no significant impact on green innovation, but the directors appointed by non-family shareholders (NFSDAs) significantly promote the implementation of green innovation strategies in family firms. The underlying mechanisms are characterized by NFSG bringing valuable resources and promoting the firm reputation, which further facilitates green innovation. The effect of NFSG is more pronounced for entrepreneurial family firms and family firms located in high institutional efficiency areas. The green professional backgrounds of NFSDAs and having excess NFSDAs also effectively promote green innovation. Finally, green innovation promotes the long-term orientation of family firms. Through this study, we draw on SEW theory to enrich research on NFSG and green innovation in family firms. Our findings can help family firms achieve a solid basis for long-term orientation.

Keywords: Non-family shareholder governance; Family firms; Green innovation (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521923003733
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:90:y:2023:i:c:s1057521923003733

DOI: 10.1016/j.irfa.2023.102857

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().