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

Kun Wang, Min Huang, Le Zhang, Kun Wang and Qiang Dong

Finance Research Letters, 2024, vol. 67, issue PA

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.

Keywords: Family business; Green innovation; Parent-child co-governance (search for similar items in EconPapers)
JEL-codes: G30 G32 M14 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324007906

DOI: 10.1016/j.frl.2024.105760

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