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| The Influences of Socioemotional Wealth Goals on Interlock Network Structure of Chinese Family Firms |
| ZHU Di，GE Jianhua，YANG Fan |
| Renmin University of China, Beijing, China |
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Abstract This study investigates how Chinese family firms are embedded in board interlocks and explores the underlying mechanisms of such structural characteristics. Our analyses of board interlocks among Chinese listed firms from 2008 to 2019 reveal that, compared to non-family firms, family firms tend to construct a more closed interlock network because they are more influenced by family logic and take the preservation of socio-emotional wealth as the main reference point in decision-making. In particular, when the controlling family’s formal control over the firm is weaker, its network structure will be more closed. The results suggest that for family firms with a high ownership balance index or a low separation ratio, the network closure is strengthened. On the contrary, exposure to corporate logic will weaken family firms’ propensity to network closure. For CEOs who have an MBA degree or have previously worked in the financial industry before, the network closure of their firms is significantly weakened.
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Received: 01 April 2022
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