Intergenerational Inheritance And Risk-taking Of Family Business

To achieve the goal of maximizing shareholders' wealth,enterprises need to bear certain risks.Appropriate risk-taking activities can bring excessive returns to the company.Excessive risk-taking or under-risk will damage the value of the company.Therefore,how to determine the level of risk-taking according to the company's own situation is an important issue.At this stage,China's family enterprises have entered the peak period of intergenerational inheritance.A large number of literature studies have shown that intergenerational inheritance often leads to the loss of entrepreneurial social capital,which leads to uncertainty in business operations.In order to maintain the emotional wealth of the family society,entrepreneurs tend to adopt risk-averse strategies to reduce the risk-taking activities of enterprises,and the value of enterprises is thus damaged.This paper takes the non-financial family-owned enterprises listed on the Shanghai and Shenzhen Stock Exchanges from 2012 to 2016 as the research object.Based on the family social emotional wealth theory,entrepreneurial social capital theory and resource-based theory,this paper examines the intergenerational inheritance and risk-taking of family enterprises.Relationship.The study found that: 1.An economic consequence of intergenerational inheritance is that intergenerational inheritance will inhibit the risk-taking behavior of family businesses,thereby damaging corporate value.2.Internal control plays a regulatory role in intergenerational inheritance and enterprise risk bearing,which will weaken the restraining effect of intergenerational inheritance on risk taking,and can be used as a countermeasure to alleviate the negative effects of intergenerational inheritance.3.Internal control plays a regulatory role between intergenerational inheritance and risk taking through risk assessment procedures.This paper provides a new perspective on family business risk-taking research,reveals the economic consequences of intergenerational inheritance to weaken corporate value by weakening corporate risk-taking,and provides countermeasures for how family-owned enterprises in intergenerational inheritance avoid corporate value loss.Enriched the literature on family business risk taking and internal control.