Family Control And Debt Financing:The Moderating Effects Of Technological Innovation Capacity And Institutional Environment

In recent years,the socialist market economy in China has developed rapidly and healthily,which is mainly due to the rapid rise of private enterprises.Family businesses,as the backbone of private enterprises,play an irreplaceable role.Gem family listed companies often need external financing because of their high growth,high level of innovation input and large demand for capital and the insufficient amount of internal financing.According to pecking order theory,debt financing is the preferred way of external financing.Therefore,it is of great significance to study debt financing of gem family listed companies.As the most significant and basic feature of family businesses,family control affects the debt financing decision of gem family listed companies.However,whether family control of the gem family listed companies has accelerating effect or blocking effect on debt financing,many scholars sticks to his own argument.In order to get rid of the difficulties in debt financing of gem family listed companies,this paper mainly discusses the influence of family control on debt financing of gem family listed companies.However,what is the relationship between debt financing and family control in different situations?Most scholars only take internal or external factors into account to explore it.Technological innovation capability,as an important source of gem family listed companies to obtain sustainable competitive advantage,affects the capital demand of enterprises,and has a significant impact on their debt financing capabilities.At the same time,the institutional environment faced by the gem family listed companies is an important factor affecting the financing cost,investors' income and risk and it has become a necessary consideration for debt financing of the related parties.Therefore,this paper combines the internal and external situation factors of the enterprises to analyze how family control affects the debt financing of the enterprises.The main content of this paper is family control's impact on debt financing of gem family listed companies and the moderating effect of technological innovation and institutional environment on family control and debt financing.In this paper,I take the gem family listed companies from 2012 to 2016 as samples to study the impact of family control on debt financing of gem family listed companies under different situations of technological innovation capability and institutional environment.Firstly,this paper makes comprehensive analysis on the literatures about family control,debt financing and family control,debt financing and technological innovation as well as debt financing and institutional environment,analyzes the influence of family control on debt financing on the basis of using agency theory,stewardship theory and social emotional wealth theory and other related theory.At the same time,it studies the moderating effect of technological innovation and institutional environment on family control and debt financing and puts forward the hypothesis;Secondly,it selects the necessary variables and variable measurement methods reasonably,establishes multivariate regression models according to the assumption and uses Stata to validate the research and empirical results obtained.The results show that the dimensions of family control(family ownership control and family management control)have negative effects of corporate debt financing;technological innovation positively moderates the relationship between family control and debt financing:when the ability of technology innovation strengthens unceasingly,the negative effect between family control and debt financing is weakened;institutional environment negatively moderates the relationship between family ownership control and debt financing:with the improvement of institutional environment,the negative effect between the control of family ownership and debt financing is enhanced.Although the institutional environment has a negative regulating effect on the relationship between the control of family management and debt financing,the regulatory role is not significant.