Chen, Mengyuan, Xiao, Jason Zezong and Zhao, Yang 2021. Confucianism, successor choice, and firm performance in family firms: Evidence from China. Journal of Corporate Finance 69 , 102023. 10.1016/j.jcorpfin.2021.102023 |
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Abstract
This study examines the nexus between Confucianism, the choice of the leadership successor, and firm performance in family firms in China. It provides original evidence that firm founders who are deeply influenced by Confucianism have a higher likelihood of choosing a family member or a guanxi-connected nonfamily member as the successor. Moreover, family/guanxi-connected successors have a positive effect on firm performance compared with their counterparts outside of the family/guanxi circle. One underlying reason is that, affected by Confucianism, only the family/guanxi-connected successors can acquire the founder's specialized assets via pre-succession internal managerial experience, which, in turn, enables them to outperform other successors.
Item Type: | Article |
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Date Type: | Publication |
Status: | Published |
Schools: | Business (Including Economics) |
Publisher: | Elsevier |
ISSN: | 0929-1199 |
Date of First Compliant Deposit: | 14 September 2022 |
Date of Acceptance: | 19 June 2021 |
Last Modified: | 06 Nov 2023 21:10 |
URI: | https://orca.cardiff.ac.uk/id/eprint/152612 |
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