Research On The Succession And Economic Behavior Of Family Business Under The New Economic Normal

Family business is an ancient and widespread form of organization around the world,and it is also the main driving force for the economic development of various countries.With the reform and opening up policy,family businesses in my country have achieved rapid development from scratch,and from small to large,many family businesses have developed into industry leaders.Family business has become an important driving force for the rapid development of China’s economy,especially in terms of creating GDP,providing jobs,paying taxes,maintaining scientific and technological innovation,and occupies an indispensable position in China’s socialist market economy system.However,with the continuous development of family businesses China,the first generation of founders have gradually grown old,and most companies have entered a critical period of generational replacement.Succession has become a huge test facing Chinese family businesses in this stage.On the other hand,China is currently in a period of economic transition,and the institutional environment faced by family businesses is quite different from the past.The "new normal" of the economy puts forward higher development requirements for family businesses.Low-cost driving needs to be transformed into innovation-driven,and extensive development at the expense of the environment needs to be transformed into green and environmentally sustainable development.Therefore,increasing enterprise innovation investment and promoting enterprises to pay attention to environmental protection has become a hot topic in the current economic transition period,attracting the common attention of business circles,academia and government departments.However,the transformation and upgrading of family businesses will inevitably cause a large number of companies to face labor pains and even bankruptcy,but this is also the normal "metabolism" of the company.For the whole industry and the whole country,it is conducive to long-term development,which is also the inevitable result of the development of the times.Therefore,considering the change of institutional environment faced by family enterprises and the practical requirements of succession.This paper first makes an in-depth study on the relationship between the institutional environment and the succession of family enterprises,and discusses the moderating role of state ownership in the relationship The results show that the worse the institutional environment,the more difficult the intergenerational inheritance of family enterprises,specifically,the lower the legal system level is,the higher the government intervention level is,and the lower the financial development level is,the more difficult succession becomes;State ownership in a family business can be used as an informal system to mitigate the negative impact of an imperfect institutional environment on succession;And when state ownership comes from the local government or participates in corporate governance,its moderating effect is more significant.Then,combined with the current policy background,one aspect that family businesses need to pay attention to: improving innovation investment,this paper studies the impact of succession on innovation investment of family enterprises,and tests the moderating effect of political capital on them.The results show succession hinders the innovation investment of family firms,and political connection has a negative moderating effect on the relationship,while state ownership has a positive moderating effect.Further research shows that in areas with poor institutional environment,the negative adjustment effect of political connections is more significant,and in areas with better institutional environment,the positive adjustment effect of state ownership is more significant.Finally,this article combines another aspect that family businesses need to pay attention to: attach importance to environmental protection,empirically examines the impact of the succession of family businesses on enterprise environmental investment,and examines the two different types of external environment,government and market,in the moderating role of the relationship between succession and corporate environmental investment.The results show that succession has a significant positive impact on family business environmental investment,and this impact is more significant in companies whose successors have overseas experience.Environmental regulation will strengthen the positive impact of succession on corporate environmental investment,while market competition will weaken it.The research in this article has profound theoretical and practical significance.Theoretical contributions mainly include: This paper chooses the institutional level to discuss its impact on the succession of family enterprises,which not only enriches the theoretical research on the succession of family enterprises in China,but also expands the theoretical boundary of the impact of institutional environment on family enterprises;We empirically test the impact of intergenerational inheritance on the innovation and environmental protection of family enterprises,which not only enriches the research on the economic consequences of succession,but also expands the theoretical research on social emotional wealth.Practical contributions mainly include: First,because China’s family enterprises as a whole have entered the period of intergenerational inheritance,and the institutional environment they face is somewhat different from that in the past.Therefore,it is necessary to discuss the influence of the institutional environment on the succession of family businesses,and the research conclusions can give family businesses and government departments a good enlightenment,so that family businesses in our country can smoothly pass through the period of succession.Second,we have combined research on succession with corporate innovation and environmental protection.Under the background of China’s economic transformation and vigorously promoting green environmental protection,this research can provide theoretical evidence and specific suggestions to enterprises and government departments,so as to make China’s family enterprises continue to maintain the momentum of healthy development.So,this article has strong theoretical and practical significance.