Family firm ownership and corporate innovation performance

Xue Gong and Shuhan Liu

Finance Research Letters, 2025, vol. 80, issue C

Abstract: This study examines the impact of family ownership on corporate innovation performance in China's A-share listed private enterprises from 2015 to 2022. The results show that family ownership significantly affects corporate innovation behavior. Executive equity incentives and analyst attention serve as moderating factors, with equity incentives mitigating the negative correlation between family ownership and innovation, and analyst attention also exerting a mitigating effect on the negative impact of family ownership on innovation performance. The findings reveal the influence of family ownership on corporate innovation and its moderating mechanisms, providing insights into how private firms can balance family control with innovation development. By strategically designing executive equity incentive plans and actively engaging with analysts, firms can foster innovation and achieve sustainable growth while preserving family control.

Keywords: Family ownership; Firm innovation; Analyst attention; Equity incentives (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006269

DOI: 10.1016/j.frl.2025.107366

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