Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5110089 | Journal of Family Business Strategy | 2016 | 14 Pages |
Abstract
We investigate the impact of family ownership on core business transformation and the moderating role of political connections in this relation through a Probit model, conditional Logit model, and Heckman selection model with instrumental variable using data from Chinese listed companies covering 2001-2010. The results demonstrate that, compared with non-family firms, family firms are more likely to transform their core business, enter strongly correlative industries and non-regulated industries, and adopt a mergers and acquisitions (M&A) mode. Furthermore, compared with politically non-connected family firms, family firms with political connections are more likely to conduct business transformation and adopt M&A rather than an internal cultivation mode to realize transformation. In addition, political connections make family firms more likely to enter weakly correlative industries and increase their chances of entering government-regulated industries.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Delu Wang, Gang Ma, Xuefeng Song, Yun Liu,