Family firms' social responsibility: Exercise of family control versus family dynasty succession

Abstract

Family owners have common interests of preserving socioemotional wealth (SEW), but their strategic preferences vary with their prioritization of different SEW aspects. This study, based on the SEW perspective, examines the differing effects of exercise of family control (focused SEW) and family dynasty succession (broad SEW) and the moderating effect of family CEO on corporate social responsibility (CSR) of family firms. The results indicate that the effect of exercise of family control on CSR is negative, while the effect of family dynasty succession on CSR is positive. Additionally, when the firm's CEO is a family member, the negative effect of exercise of family control is weaker and the positive effect of family dynasty succession is stronger.