Intergenerational succession and corporate philanthropy: a stakeholder perspective

Purpose: Based on stakeholder theory, this study aims to examine the impact of family firm succession on corporate philanthropy while considering the potential role of the clan cultural context, industry context, and the stage of succession. Design/methodology/approach: Data were based on a sample of 7,502 firm-year observations from listed family firms in China’s A-share markets between 2007 and 2018. Several Tobit models are used for analysing the data. Difference-in-difference regression method and propensity score matching method are used for robustness tests. Findings: Family firms undergoing succession tend to spend more on corporate philanthropy compared to non-succession counterparts. This effect is more pronounced among polluting industry firms and weaker in regions with strong clan cultures and after the process of succession is complete. Originality/value: This study sheds new light on the relationship between inter-generational succession and corporate philanthropy. By considering the moderating effect of the clan cultural context, industry context, and the stage of succession, this study further advances the understanding of the role of corporate philanthropy in managing family firm succession.