The Influence Of Family Ownership On Corporate Charitable Donations Strength:an Empirical Study Based On2008-2012A-Share Listed Family Firms In China

With the deepening of family business studies, the influence mechanism of family involvement and the resulting socioemotional wealth of the family business to charitable donations is becoming a focus of research in the field of family business. Previous studies have rarely investigate the effects of family ownership on the strength of corporate charitable donations from the perspective of the family involved, neither related to the introduction of the manipulated variable further explore the relationship between the two. In this study, we investigated the impact of family ownership on the strength of corporate charitable donations based on the theory of socioemotional wealth in the Chinese context, and researched the moderating effect of institutional investors ownership, pressure-resistant institutional investors ownership, pressure-sensitive institutional investors ownership, analyst tracking, analyst ratings.This study investigated the impact of family ownership on corporate charitable donations strength, and the moderating effects of institutional investors and securities analysts. This paper focuses on three issues:(1) How does family ownership influences charitable donations strength in the family business?(2) Will the positive relationship between family ownership and charitable donations strength weaken as investor ownership? What’s the difference of the moderating effects between pressure-resistant institutional investor ownership and pressure-sensitive institutional investor ownership?(3) Does analyst tracking weaken the positive relationship between family ownership and charitable donations strength? Does analyst rating weaken the positive relationship between family ownership and charitable donations strength? This study constructed an unbalanced panel database which include China A-share listed family firms from2008to2012, by theoretical and empirical analyzing, we draw the following conclusions:(1) Family ownership positively relates to charitable donations;(2) The positive relationship between family ownership and charitable donations strength will weaken as investor ownership.(3) Specifically, the positive relationship between family ownership and charitable donations strength will weaken as pressure-resistant institutional investor ownership.(4) The positive relationship between family ownership and charitable donations strength will weaken as analyst tracking.(5) The positive relationship between family ownership and charitable donations strength will weaken as analyst rating.Theoretical contributions and managerial implications of this study are the following points:First, this study enriches the theoretical study of the family business in Chinese context, and the introduction of socioemotional wealth theory has an important theoretical significance for understanding the charitable giving behavior of family business. Secondly, this study gives a deep understanding of intrinsic motivation and its influencing factors of family businesses charitable donation, in order to better promote family businesses actively committed to social responsibility.