Research On The Impact Of Social Emotional Wealth On Long-term Investment Of Family Businesse

It has been argued that long-term investment in family firms based on long-term orientation can promote sustainable development,but it is still an important and controversial issue as to how socio-emotional wealth,which is unique to family firms,affects long-term corporate investment.To address this issue,based on literature research,this paper constructs a theoretical model of the relationship between SEW and long-term investment in family firms,proposes relevant research hypotheses and then conducts empirical analysis,and analyzes the mechanism of the role of SEW and long-term investment in family firms through the specific case of Shandong Mining Machinery.First,this paper provides a theoretical overview of the research on SEW and long-term investment in family firms to lay the foundation for the subsequent research hypotheses.Secondly,considering the existing research results and the current development of family firms in China,we divide SEW into extended SEW and restricted SEW,construct the theoretical frame work and research hypotheses on the relationship between the two types of SEW and long-term investment in family firms respectively,and establish regression models for empirical testing,and find that extended SEW and restricted SEW have different effects on long-term investment in family firms.Finally,a case study approach is used to analyze the intermediate mechanisms of long-term investment in two different SEW-acting family firms,combined with a typical case of Shandong Mining Machinery.Through theoretical analysis,empirical research and case study,this paper draws the following research conclusions:(1)Through empirical analysis,it is found that different types of SEW have different effects on family firms’ long-term investment,and constrained SEW inhibit family firms’ long-term investment,while extended SEW promote family firms’ longterm investment.(2)Through the case study of Shandong Mining Machinery,it is found that Shandong Mining Machinery mainly uses constrained SEW as the main reference point for decision making before 2015,during which constrained SEW makes the firm’s strategy conservative,single business and avoids external financing,which in turn inhibits the long-term investment of the case firm;while after 2015,Shandong Mining Machinery uses extended SEW as the main reference point for decision making,while extended The extended SEW induces the control family to be willing to accept external financing,explore markets and focus on R&D innovation,which in turn positively influences the long-term investment in Shandong Mining Machinery.This paper reveals the heterogeneous effects of different dimensions of SEW on family firms’ long-term investment,and the findings are very important for integrating the controversies between SEW and family firms’ long-term investment behavior by previous scholars,while introducing textual analysis into the measurement of SEW in terms of measurement,which provides new ideas to promote the further development of SEW theory.In practice,the findings of this paper are also beneficial to provide references for the decision making of family business managers and relevant governmental functionaries.