Intergenerational power gap and R&D investment: Evidence from China

oleh: Yong Zhao, Xi Yang, Daqi Xin, Wencang Zhou, Shuaijun Zhang, Liying Wang

Format: Article
Diterbitkan: Elsevier 2023-04-01

Deskripsi

Family firms face the dual challenge of succession and innovation. Based on the attention-based view, this study empirically investigates the effect of intergenerational power gap on corporate R&D investment, using a sample of Chinese listed family firms. We find that intergenerational power gap has a negative effect on corporate R&D investment, and this negative relationship is amplified in traditional industries and in firms with a low proportion of institutional ownership. Our findings have theoretical and practical implications for R&D investment in the family business succession process.