Succession,Ownership Structure And Technological Innovation

As an important force of market economy,family firms have no substitute for their position in China's economic development.Their unique corporate governance and culture have always been noticed and studied by scholars.With the continuous development,many family firms in China are in or about to enter the important stage of succession.The technological innovation is the main way for family firms to deal with market challenges and make their families grow evergreen.Therefore,it is crucial to pay attention to the issues of family firms' succession,corporate governance and technological innovation.On the basis of the home and abroad literature at and the Authority Legitimacy Theory,the Management Myopia Theory and the Corporate Governance Theory,by using the data Chinese listed family firms from 2008-2015,this paper study the special succession stage's impact on technological innovation.At the same time,this paper also examines the differences in the influence of family firms' succession on technological innovation between different succession paths.Finally,this paper also tests the regulatory effects of different corporate governance mechanisms in family firms on the impact of succession on technological innovation.This paper draw the below conclusions:(1)The process of succession will have a negative impact on family firms' technological innovation,including innovation input and output.(2)The negative impact of the succession process on technological innovation is less significant in the family firms that choose the internal succession path,indicating that the involvement of the family second generation has a positive effect on technological innovation.(3)Within a certain range,family ownership can ease the negative impact of the succession process on technological innovation.Beyond the range,the increase of family ownership is not conducive to easing the negative impact.Equity balance has aggravated the negative impact of succession on technological innovation.Institutional investors did not shown any regulatory effect.