Research On The Relationship Of Family Control,institutional Investors Shareholding And Corporate Social Responsibility

As Chinese economy develop rapidly,corporate social responsibility has also received more and more attention.As the main force of private enterprises,family enterprises play an important role in corporate social responsibility(CSR for short).However,in reality,they differ greatly in CSR performance.Theoretically,previous research mainly focused on the differences between the CSR performance of family and non-family businesses and the reasons why they show such discrepancy.Less consideration was given to the impact of heterogeneity of family businesses on CSR performance.Family business governance is the key to scholars who study the heterogeneity of family firms Thus,from the perspective of family business governance,this article selects two important governance variables which include family control and institutional investors shareholding,and explores the impact of these two variables on family business CSR performance.In addition,this article further introduces product market competition(divided into two dimensions: competitive position of enterprises and market concentration)as a moderating variable to explores the impact of the interaction of internal and external governance mechanisms of family businesses on their CSR performance.In this research,a large sample empirical study was conducted using the unbalanced panel database of Chinese A-share listed family firms from 2013 to 2016.Correlation analysis and regression analysis were used to test hypotheses.The research results show that:(1)the influence of family control on corporate social responsibility presents an inverted U-shaped relationship,that is,as the degree of family control over the enterprise reinforces,the level of CSR performance increases first and then decreases;(2)institutional investor shareholdings has a negative impact on the CSR performance of the family business;(3)competitive position of enterprises negatively regulates the inverted U-shaped relationship between family control and CSR performance,that is,the inverted U-shaped curve shape is more gentle under higher competitive position of enterprises.This article enriches the research on the CSR of family businesses and provides a possible theoretical explanation for the previous divergence of family control and CSR performance.In practice,it has great significance for the family firms governance and offer adirection for family business to balance the CSR performance and economic performance.