Keeping it in the family: financial constraints and the succession intention of micro and small enterprises in China

References

• Allen, F., J. Qian, and M. Qian. 2008. “China's Financial System: Past, Present, and Future.” In China's Great Economic Transformation, edited by L. Brandt, and T. Rawski, 506–568. New York: Cambridge University Press.
   Google Scholar
• Angrist, J. D. 2001. “Estimation of Limited Dependent Variable Models with Dummy Endogenous Regressors.” Journal of Business & Economic Statistics 19: 2–28. doi:10.1198/07350010152472571
   Web of Science ®Google Scholar
• Arcand, J. L., E. Berkes, and U. Panizza. 2015. “Too Much Finance?” Journal of Economic Growth 20: 105–148. doi:10.1007/s10887-015-9115-2
   Web of Science ®Google Scholar
• Ayyagari, M., A. Demirgüç-Kunt, and V. Maksimovic. 2010. “Formal Versus Informal Finance: Evidence from China.” The Review of Financial Studies 23: 3048–3097. doi:10.1093/rfs/hhq030
   Web of Science ®Google Scholar
• Barrot, J.-N. 2016. “Trade Credit and Industry Dynamics: Evidence from Trucking Firms.” The Journal of Finance 71: 1975–2016. doi:10.1111/jofi.12371
   Web of Science ®Google Scholar
• Bennedsen, M., J. P. H. Fan, M. Jian, and Y.-H. Yeh. 2015. “The Family Business Map: Framework, Selective Survey, and Evidence from Chinese Family Firm Succession.” Journal of Corporate Finance 33: 212–226. doi:10.1016/j.jcorpfin.2015.01.008
   Web of Science ®Google Scholar
• Bennedsen, M., K. M. Nielsen, F. Perez-Gonzalez, and D. Wolfenzon. 2007. “Inside the Family Firm: The Role of Families in Succession Decisions and Performance.” The Quarterly Journal of Economics 122: 647–691. doi:10.1162/qjec.122.2.647
   Web of Science ®Google Scholar
• Bertrand, M., E. F. P. Luttmer, and S. Mullainathan. 2000. “Network Effects and Welfare Cultures.” The Quarterly Journal of Economics 115: 1019–1055. doi:10.1162/003355300554971
   Web of Science ®Google Scholar
• Bizri, R. 2016. “Succession in the Family Business: Drivers and Pathways.” International Journal of Entrepreneurial Behavior & Research 22: 133–154. doi:10.1108/IJEBR-01-2015-0020
   Web of Science ®Google Scholar
• Brandt, L., and H. Li. 2003. “Bank Discrimination in Transition Economies: Ideology, Information, or Incentives?” Journal of Comparative Economics 31: 387–413. doi:10.1016/S0147-5967(03)00080-5
   Web of Science ®Google Scholar
• Brenes, E. R., K. Madrigal, and G. E. Molina-Navarro. 2006. “Family Business Structure and Succession: Critical Topics in Latin American Experience.” Journal of Business Research 59: 372–374. doi:10.1016/j.jbusres.2005.09.011
   Web of Science ®Google Scholar
• Burkart, M., F. Panunzi, and A. Shleifer. 2003. “Family Firms.” The Journal of Finance 58: 2167–2201. doi:10.1111/1540-6261.00601
   Web of Science ®Google Scholar
• Cai, Y., and W. Feng. 2021. “The Social and Sociological Consequences of China's One-Child Policy.” Annual Review of Sociology 47: 587–606. doi:10.1146/annurev-soc-090220-032839
   Web of Science ®Google Scholar
• Cameron, C. A., and D. L. Miller. 2015. “A Practitioner’s Guide to Cluster-Robust Inference.” Journal of Human Resources 50: 317–372. doi:10.3368/jhr.50.2.317
   Web of Science ®Google Scholar
• Campello, M., J. R. Graham, and C. R. Harvey. 2010. “The Real Effects of Financial Constraints: Evidence from a Financial Crisis.” Journal of Financial Economics 97: 470–487. doi:10.1016/j.jfineco.2010.02.009
   Web of Science ®Google Scholar
• Cao, J., D. Cumming, and X. Wang. 2015. “One-Child Policy and Family Firms in China.” Journal of Corporate Finance 33: 317–329. doi:10.1016/j.jcorpfin.2015.01.005
   Web of Science ®Google Scholar
• Carney, M., M. Van Essen, E. R. Gedajlovic, and P. P. M. A. R. Heugens. 2015. “What Do We Know About Private Family Firms? A Meta–Analytical Review.” Entrepreneurship Theory and Practice 39: 513–544. doi:10.1111/etap.12054
   Web of Science ®Google Scholar
• Chen, Z., Ma, C., Sinclair, A., 2021. Banking on the Confucian Clan: Why China Developed Financial Markets So Late? Available at SSRN 3671280.
   Google Scholar
• Chen, H., D. Yang, J. H. Zhang, and H. Zhou. 2020. “Internal Controls, Risk Management, and Cash Holdings.” Journal of Corporate Finance 64: Article no. 101695. doi:10.1016/j.jcorpfin.2020.101695
   Web of Science ®Google Scholar
• Cheng, J., Y. Dai, S. Lin, and H. Ye. 2021. “Clan Culture and Family Ownership Concentration: Evidence from China.” China Economic Review 70: Article no. 101692. doi:10.1016/j.chieco.2021.101692
   Web of Science ®Google Scholar
• Chua, J. H., J. J. Chrisman, and P. Sharma. 2003. “Succession and Nonsuccession Concerns of Family Firms and Agency Relationship with Nonfamily Managers.” Family Business Review 16: 89–107. doi:10.1111/j.1741-6248.2003.00089.x
   Google Scholar
• Cleary, S. 1999. “The Relationship Between Firm Investment and Financial Status.” The Journal of Finance 54: 673–692. doi:10.1111/0022-1082.00121
   Web of Science ®Google Scholar
• Cornaggia, J., Y. Mao, X. Tian, and B. Wolfe. 2015. “Does Banking Competition Affect Innovation?” Journal of Financial Economics 115: 189–209. doi:10.1016/j.jfineco.2014.09.001
   Web of Science ®Google Scholar
• Davis, P. S., and P. D. Harveston. 1998. “The Influence of Family on the Family Business Succession Process: A Multi-Generational Perspective.” Entrepreneurship Theory and Practice 22: 31–53. doi:10.1177/104225879802200302
   Google Scholar
• De Massis, A., J. H. Chua, and J. J. Chrisman. 2008. “Factors Preventing Intra-Family Succession.” Family Business Review 21: 183–199. doi:10.1111/j.1741-6248.2008.00118.x
   Web of Science ®Google Scholar
• Deuflhard, F., D. Georgarakos, and R. Inderst. 2019. “Financial Literacy and Savings Account Returns.” Journal of the European Economic Association 17: 131–164. doi:10.1093/jeea/jvy003
   Web of Science ®Google Scholar
• Du, J., and B. Nguyen. 2022. “Cognitive Financial Constraints and Firm Growth.” Small Business Economics 58: 2109–2137. doi:10.1007/s11187-021-00503-7
   Web of Science ®Google Scholar
• Du, P., Y. Zheng, and S. Wang. 2022. “The Minimum Wage and the Financialization of Firms: Evidence from China.” China Economic Review 76: Article no. 101870. doi:10.1016/j.chieco.2022.101870
   Web of Science ®Google Scholar
• Fan, G., X. Wang, and L. Hu. 2018. Marketization Index of China's Province: NERI Report 2018. Beijing, People’s Republic of China: Social Sciences Academic Press.
   Google Scholar
• Fisman, R., and J. Svensson. 2007. “Are Corruption and Taxation Really Harmful to Growth? Firm Level Evidence.” Journal of Development Economics 83: 63–75. doi:10.1016/j.jdeveco.2005.09.009
   Web of Science ®Google Scholar
• Fonseca, J., and B. Van Doornik. 2022. “Financial Development and Labor Market Outcomes: Evidence from Brazil.” Journal of Financial Economics 143: 550–568. doi:10.1016/j.jfineco.2021.06.009
   Web of Science ®Google Scholar
• Fukuyama, F. 1995. Trust: The Social Virtues and the Creation of Prosperity. New York: Simon and Schuster, Free Press.
   Google Scholar
• Goetzmann, W. N. 2016. Money Changes Everything: How Finance Made Civilization Possible. Princeton, NJ: Princeton University Press.
   Google Scholar
• Goetzmann, W. N., and E. Köll. 2005. “The History of Corporate Ownership in China: State Patronage, Company Legislation, and the Issue of Control.” In A History of Corporate Governance Around the World: Family Business Groups to Professional Managers, edited by R. K. Morck, 149–184. Chicago and London: The University of Chicago Press.
   Google Scholar
• Gorodnichenko, Y., and M. Schnitzer. 2013. “Financial Constraints and Innovation: Why Poor Countries Don't Catch Up.” Journal of the European Economic Association 11: 1115–1152. doi:10.1111/jeea.12033
   Web of Science ®Google Scholar
• Greif, A., and G. Tabellini. 2010. “Cultural and Institutional Bifurcation: China and Europe Compared.” American Economic Review 100: 135–140. doi:10.1257/aer.100.2.135
   Web of Science ®Google Scholar
• Greif, A., and G. Tabellini. 2017. “The Clan and the Corporation: Sustaining Cooperation in China and Europe.” Journal of Comparative Economics 45: 1–35. doi:10.1016/j.jce.2016.12.003
   Web of Science ®Google Scholar
• Grohmann, A., T. Klühs, and L. Menkhoff. 2018. “Does Financial Literacy Improve Financial Inclusion? Cross Country Evidence.” World Development 111: 84–96. doi:10.1016/j.worlddev.2018.06.020
   Web of Science ®Google Scholar
• Hadlock, C. J., and J. R. Pierce. 2010. “New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index.” The Review of Financial Studies 23: 1909–1940. doi:10.1093/rfs/hhq009
   Web of Science ®Google Scholar
• Hou, X., R. Yang, and C. Liu. 2022. “Confucian Culture and Informal Household Financing: Evidence from China's Counties.” Borsa Istanbul Review 22: 1005–1019. doi:10.1016/j.bir.2022.07.007
   Web of Science ®Google Scholar
• Hung, A., Parker, A.M., Yoong, J., 2009. "Defining and Measuring Financial Literacy." RAND Working Paper Series WR-708.
   Google Scholar
• Kaplan, S. N., and L. Zingales. 1997. “Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?” The Quarterly Journal of Economics 112: 169–215. doi:10.1162/003355397555163
   Web of Science ®Google Scholar
• Kong, D., Y. Wang, and J. Zhang. 2020. “Efficiency Wages as Gift Exchange: Evidence from Corporate Innovation in China.” Journal of Corporate Finance 65: Article no. 101725. doi:10.1016/j.jcorpfin.2020.101725
   Web of Science ®Google Scholar
• Lam, W. 2011. “Dancing to Two Tunes: Multi-Entity Roles in the Family Business Succession Process.” International Small Business Journal 29: 508–533. doi:10.1177/0266242610376357
   Web of Science ®Google Scholar
• Lancaster, T. 2000. “The Incidental Parameter Problem Since 1948.” Journal of Econometrics 95: 391–413. doi:10.1016/S0304-4076(99)00044-5
   Web of Science ®Google Scholar
• Lee, K. S., G. H. Lim, and W. S. Lim. 2003. “Family Business Succession: Appropriation Risk and Choice of Successor.” Academy of Management Review 28: 657–666. doi:10.2307/30040754
   Web of Science ®Google Scholar
• Lewbel, A. 2012. “Using Heteroscedasticity to Identify and Estimate Mismeasured and Endogenous Regressor Models.” Journal of Business & Economic Statistics 30: 67–80. doi:10.1080/07350015.2012.643126
   Web of Science ®Google Scholar
• Liu, J. Y. 2018. “An Integrative Conceptual Framework for Sustainable Successions in Family Businesses: The Case of Taiwan.” Sustainability 10: Article no. 3656. doi:10.3390/su10103656.
   Web of Science ®Google Scholar
• Liu, Y., and Z. Shao. 2020. Research Report on the Development of Small and Micro Enterprises in China (2019). Beijing: China Social Sciences Press.
   Google Scholar
• Lu, Y., I. P. Png, and Z. Tao. 2013. “Do Institutions Not Matter in China? Evidence from Manufacturing Enterprises.” Journal of Comparative Economics 41: 74–90. doi:10.1016/j.jce.2011.11.002
   Web of Science ®Google Scholar
• Luan, C.-J., Y.-Y. Chen, H.-Y. Huang, and K.-S. Wang. 2018. “CEO Succession Decision in Family Businesses – A Corporate Governance Perspective.” Asia Pacific Management Review 23: 130–136. doi:10.1016/j.apmrv.2017.03.003
   Web of Science ®Google Scholar
• Lusardi, A., P.-C. Michaud, and O. S. Mitchell. 2017. “Optimal Financial Knowledge and Wealth Inequality.” Journal of Political Economy 125: 431–477. doi:10.1086/690950
   PubMed Web of Science ®Google Scholar
• Malinen, P. 2001. “Like Father Like Son? Small Family Business Succession Problems in Finland.” Enterprise and Innovation Management Studies 2: 195–204. doi:10.1080/14632440110105053
   Google Scholar
• Manova, K. 2013. “Credit Constraints, Heterogeneous Firms, and International Trade.” The Review of Economic Studies 80: 711–744. doi:10.1093/restud/rds036
   Web of Science ®Google Scholar
• Murro, P., and V. Peruzzi. 2019. “Family Firms and Access to Credit. Is Family Ownership Beneficial?” Journal of Banking & Finance 101: 173–187. doi:10.1016/j.jbankfin.2019.02.006
   Web of Science ®Google Scholar
• Oster, E. 2019. “Unobservable Selection and Coefficient Stability: Theory and Evidence.” Journal of Business & Economic Statistics 37: 187–204. doi:10.1080/07350015.2016.1227711
   Web of Science ®Google Scholar
• Pan, X., and G. G. Tian. 2016. “Family Control and Loan Collateral: Evidence from China.” Journal of Banking & Finance 67: 53–68. doi:10.1016/j.jbankfin.2016.02.003
   Web of Science ®Google Scholar
• Scholes, L., M. Wright, P. Westhead, and H. Bruining. 2010. “Strategic Changes in Family Firms Post Management Buyout: Ownership and Governance Issues.” International Small Business Journal 28: 505–521. doi:10.1177/0266242610370390
   Web of Science ®Google Scholar
• Shen, N., and J. Su. 2017. “Religion and Succession Intention – Evidence from Chinese Family Firms.” Journal of Corporate Finance 45: 150–161. doi:10.1016/j.jcorpfin.2017.04.012
   Web of Science ®Google Scholar
• Tatoglu, E., V. Kula, and K. W. Glaister. 2008. “Succession Planning in Family-Owned Businesses: Evidence from Turkey.” International Small Business Journal 26: 155–180. doi:10.1177/0266242607086572
   Web of Science ®Google Scholar
• Venter, E., and C. Boshoff. 2006. “The Influence of Family-Related Factors on the Succession Process in Small and Medium-Sized Family Businesses: Management.” South African Journal of Economic and Management Sciences 9: 17–32. doi:10.4102/sajems.v9i1.1154
   Web of Science ®Google Scholar
• Venter, E., C. Boshoff, and G. Maas. 2005. “The Influence of Successor-Related Factors on the Succession Process in Small and Medium-Sized Family Businesses.” Family Business Review 18: 283–303. doi:10.1111/j.1741-6248.2005.00049.x
   Web of Science ®Google Scholar
• Ward, J. L. 1997. Keeping the Family Business Healthy: How to Plan for Continuing Growth, Profitability, and Family Leadership. Marietta, GA: Business Owner Resources.
   Google Scholar
• Ward, J. L. 2004. Perpetuating the Family Business: 50 Lessons Learned from Long Lasting, Successful Families in Business. New York: Palgrave Macmillan.
   Google Scholar
• Westhead, P. 2003. “Succession Decision-Making Outcomes Reported by Private Family Companies.” International Small Business Journal 21: 369–401. doi:10.1177/02662426030214001
   Web of Science ®Google Scholar
• Whited, T. M., and G. Wu. 2006. “Financial Constraints Risk.” The Review of Financial Studies 19: 531–559. doi:10.1093/rfs/hhj012
   Web of Science ®Google Scholar
• Xu, N., Q. Yuan, X. Jiang, and K. C. Chan. 2015. “Founder's Political Connections, Second Generation Involvement, and Family Firm Performance: Evidence from China.” Journal of Corporate Finance 33: 243–259. doi:10.1016/j.jcorpfin.2015.01.004
   Web of Science ®Google Scholar
• Zhang, C. 2020. “Clans, Entrepreneurship, and Development of the Private Sector in China.” Journal of Comparative Economics 48: 100–123. doi:10.1016/j.jce.2019.08.008
   Web of Science ®Google Scholar
• Zhou, Y., Q. Hu, J. Yao, and X. Qin. 2016. “The Determinants of Family Business Owners’ Intrafamily Succession Intention: An Interplay Between Business Owners and Institutional Environment.” Chinese Management Studies 10: 710–725. doi:10.1108/CMS-03-2016-0063
   Web of Science ®Google Scholar