Family Involvement, Institutional Investor Shareholding and Corporate Social Responsibility

Abstract

As an important form of enterprise, family business's production and operation activities are largely affected by family involvement. This paper takes China's A-share listed family enterprises from 2016 to 2020 as the research object to explore the impact of family involvement on corporate social responsibility. The research results show that with the increase of family involvement, family members take the maintenance of social emotional wealth as an important basis for business decisions, and enterprises will take more active social responsibilities. Further analysis shows that the level of family ownership involvement plays a stronger role in enhancing the level of corporate social responsibility when institutional investors hold lower shares. Based on the subdivision analysis of the way of family ownership, the results show that the improvement of the involvement of family ownership contributes to the performance of the social responsibility of directly established enterprises, and the involvement of family governance and management power significantly and positively affects the performance of the social responsibility of indirectly established family enterprises. Based on the analysis of the difference in the duration of family-owned enterprises, the results show that the higher the degree of family involvement of family-owned enterprises with a shorter duration of family-owned enterprises, the more conducive to the performance of corporate social responsibility. This paper discusses the impact of family involvement of Chinese family enterprises on their social responsibility, hoping to provide guidance for reasonably guiding family enterprises to assume social responsibility.