Family Involvement and Firm Governance: In the View of Socioemotional Wealth Protection


Family business is one of the things in the past, also is the existing way, the model of the future. Based on the 1420 private companies listed in China for 7 years (2006-2012), data statistical analysis found that with the increasing of the year, two rights separation degree of private enterprises were falling. As the change of the institutional environment, involved in the enterprise internal members of the family are increasing, and the source is also diversified. Listed on the mainland China for 717 family enterprises 7 years (2006-2012), the data of empirical test showed that the family members involved in the enterprise are advantageous to the family firm social emotional wealth preservation; the relationship of core family and family enterprise social emotional wealth behavior had a direct relationship. The improvement of the external institutional environment also be advantageous to the family enterprise social emotional wealth preservation, and the external environment will also be able to change influence of the family members involved in the enterprise to family enterprise social emotional wealth preservation behavior. The outbreak of the financial crisis eases the contradiction between the members of the family and the common crisis awareness, which shows the relationship between brothers and relatives and friends with the core family relationship (marriage) family members for the preservation of the family enterprise social emotional wealth which make greater contribution than the second direct generation.

Share and Cite:

Yuan, Z. , Han, X. and Zheng, Y. (2015) Family Involvement and Firm Governance: In the View of Socioemotional Wealth Protection. Open Journal of Business and Management, 3, 453-464. doi: 10.4236/ojbm.2015.34046.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] Le Breton-Miller, L. and Miller, D. (2013) Socioemotional Wealth across the Family Firm Life Cycle: A Commentary on “Family Business Survival and the Role of Boards”. Entrepreneurship Theory and Practice, 37, 1391-1397.
[2] Miller, D., Le Breton-Miller, I. and Lester, R.H. (2013) Family Firm Governance, Strategic Conformity, and Performance: Institutional vs. Strategic Perspectives. Organization Science, 24, 189-209.
[3] Gomez-Mejia, L.R., Makri, M. and Kintana, M.L. (2010) Diversification Decisions in Family—Controlled Firms. Journal of Management Studies, 47, 223-252.
[4] La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny, R. (2002) Investor Protection and Corporate Valuation. Journal of Finance, 57, 1147-1170.
[5] (2012) Family, Marketization and Entrepreneurial Business Relationship Network Transaction Costs. Nankai Management Review.
[6] McConaugby, D.L., Matthews, C.H. and Fialko, A.S. (2001) Founding Family Controlled Firms: Performance, Risk, and Value. Journal of Small Business Management, 39, 31-49.
[7] Chen, H.L. and Hsu, W.T. (2009) Family Ownership, Board Independence, and R&D Investment. Family Business Review, 22, 347-362.
[8] Van Essen, M., van Oosterhout, J.H. and Carney, M. (2012) Corporate Boards and the Performance of Asian Firms: A Meta-Analysis. Asia Pacific Journal of Management, 29, 873-905.
[9] Chrisman, J.J. and Patel, P.C. (2012) Variations in R&D Investments of Family and Nonfamily Firms: Behavioral Agency and Myopic Loss Aversion Perspectives. Academy of Management Journal, 55, 976-997.
[10] Mundlak, Y. (1978) On the Pooling of Time Series and Cross Section Data. Econometrica, 46, 69-85.

Copyright © 2022 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.