Managerial successions and family firms' access to trade credit financing: Evidence from China

Changshuai Pei, Yuyang Chen and Yun Ling

Pacific-Basin Finance Journal, 2025, vol. 92, issue C

Abstract: Using a sample of 155 succession cases of family firms in China between 2010 and 2019, this study investigates how managerial successions affect corporate access to trade credit. Our findings indicate that family successors can get more trade credit than non-family successors around transition. Cross-sectional tests show that such effect mainly exists when the family successor has closer kinship with the founder and is in entrepreneurial family firm. In addition, family successors' advantages in getting trade credit around succession disappear when the non-family successors are strongly monitored by family directors, have established professional connection through industry association, and hold membership status in the Communist Party of China (CPC).

Keywords: Family firms; Succession; Trade credit; Reputation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:92:y:2025:i:c:s0927538x25001271

DOI: 10.1016/j.pacfin.2025.102790

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