Does The Governance Model of Husband-and-Wife Shareholding Lead to Underinvestment?

Abstract

This paper explores the extent to which joint shareholding by husband and wife affects underinvestment in family firms by establishing a multiple regression model based on the family firm-specific socio-emotional wealth theory perspective. It is found that joint spousal shareholding can alleviate the underinvestment of family firms to a certain extent, and it is also found that the underinvestment can be further alleviated when the important positions in family firms have technical backgrounds as well as when the family firms actively undertake social responsibilities. The results of this paper suggest that family firms should utilize the advantages of joint ownership in the future, which is conducive to the long-term development of the enterprise