The influence from the past: Successors’ overseas growth experiences and corporate risk-taking

Abstract

This study explores the effect of the overseas growth experiences of successors in family businesses on corporate risk-taking. We theorize that successors in family businesses, influenced by psychological characteristics imprinted during their overseas experiences, are more inclined to undertake risky strategic decisions. However, due to considerations related to social emotional wealth, family businesses may intervene in the successors’ risk-taking decisions. Therefore, family control may positively or negatively moderate the relationship between successors’ overseas growth experiences and corporate risk-taking. Our theoretical expectations are tested using a matched sample of Chinese-listed family firms from 2012 to 2021. With supportive empirical results, we contribute to the literature on risk-taking by exploring the predecessors of corporate risk-taking and enriching SEW theory by bringing in the insights of imprinting theory.

Keywords

• family business successor
• overseas growth experience
• corporate risk-taking
• imprint
• family control