Family Control, Socioemotional Wealth, and Governance Environment: The Case of Bribes
Shujun Ding, Baozhi Qu, Zhenyu Wu
Journal of Business Ethics · 2016 · Volume 136 · Issue 3
DOI: 10.1007/s10551-015-2538-z
Abstract
This study examines the relationship between family control and young entrepreneurial firm’s bribing behavior around the globe. Relying on over 2,000 young firms from the World Bank Environment Survey, we find that family control helps to reduce a firm’s bribery behavior, but further investigation shows that this effect only exists in countries with weaker macro-governance environment. In countries with more established and transparent governance mechanism, family control does not seem to make any difference. We interpret our findings as the business family’s preservation of socioemotional wealth.
Keywords
Bribe, Family control, New entrepreneurial firms, Governance environment, Socioemotional wealth
Enable JavaScript for citation tools and additional paper interactions.