Research On The Influence Of Family Involvement On Long-term Investment

As a common economic organization,family business is distributed in different industries,systems and fields,accounting for more than 80%of private enterprises,which is an important force to promote social and economic development.At present,family business in China has entered a critical period of transition from the first generation founder to the second generation inheritor.Family business is facing the dual challenges of inheritance and development.In order to achieve these goals,family enterprises tend to pursue the long-term value of enterprises.To achieve the long-term goal of an enterprise,long-term investment is closely related to the internal and external factors of the enterprise.Therefore,from the perspective of family business,on the one hand,this paper explores the mechanism of internal factors family involvement on long-term investment,on the other hand,it analyzes the impact of external business environment on long-term investment.First of all,in order to explore the impact of family involvement on long-term investment,this paper analyzes the mechanism of family involvement on long-term investment from the perspective of principal-agent theory,housekeeper theory and social emotional wealth theory,and puts forward the following three research hypotheses:(1)in family business,cash flow right has a positive impact on long-term investment;(2)in family business(3)in family business,family involvement management has a positive impact on long-term investment.Secondly,in order to analyze the impact of external environment on family involvement and long-term investment,this paper constructs the business environment index,and puts forward the fourth hypothesis:business environment will positively regulate the relationship between family involvement and long-term investment,that is,business environment will weaken the negative impact of family involvement on long-term investment,and enhance the positive impact of family involvement on long-term investment.In order to verify the above research hypothesis,this paper takes the family enterprises listed in A-share market as the research object,selects the family enterprise data from 2009 to 2018 as the research sample,and finally obtains 12124 observation values after screening the initial sample.After descriptive analysis,correlation test and regression analysis of the sample data,this paper draws the following conclusions:(1)the cash flow right held by the family is positively correlated with the long-term investment,and is significant at the statistical level of 1%;(2)the deviation value of the cash flow right and control right held by the family is negatively correlated with the long-term investment,and is significant at the statistical level of 1%;(3)the involvement of the family Management is positively related to long-term investment,and it is significant at the statistical level of 5%;(4)business environment will positively regulate the relationship between family involvement and long-term investment,that is,the better business environment is,the greater the positive impact of family involvement on long-term investment is,and the smaller the negative impact of family involvement on long-term investment is.The conclusion of this paper enriches the theoretical research in the field of family business and provides a reference for family business governance.