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dc.contributor.authorPark, Sang-Bum
dc.contributor.authorKim, H.
dc.date.accessioned2020-11-18T23:20:34Z
dc.date.accessioned2020-12-07T17:14:26Z
dc.date.available2020-11-18T23:20:34Z
dc.date.available2020-12-07T17:14:26Z
dc.date.issued2019-12
dc.identifier.citationPark S-B and Kim H (2019) How does family governance shape corporate philanthropy? Interaction effects between family ownership and management controls. Korean Management Review. 48(6): 1591-1623.en_US
dc.identifier.urihttp://hdl.handle.net/10454/18204
dc.descriptionNoen_US
dc.description.abstractWe examine the effect of family governance on corporate philanthropy by focusing on the motives of controlling families. We emphasize that controlling families have two different motives, namely, financial and socioemotional motives. On this basis, we argue that the two motives have contrasting effects on corporate philanthropy. Given that family ownership represents the financial motive of family principals, the first hypothesis posits that family ownership is negatively related to corporate philanthropy. Family management increases family visibility and thus encourages controlling families to be concerned with their socioemotional wealth. That is, the higher the visibility of controlling families in the firm, the more likely the overlap will be between family and firm identity. Thus, the second and third hypotheses predict that family involvement in management as a family CEO or director positively moderates the relationship between family ownership and corporate philanthropy. We test our hypotheses using fixed effects panel regression models and the sample of large nonfinancial Korean family firms listed in KOSPI, Korea’s major stock market. Test results support our hypotheses. We find that family firms become reluctant to engage in discretionary wealth transfer to nonfamily stakeholders as family ownership increases. However, this negative effect of family ownership on corporate philanthropy is weakened by family involvement in top management and the board of directors. Our findings reconcile the inconsistent results in the literature on family business and CSR, which is divided into positive and negative perspectives. In this manner, we revisit the assumption of prior research, which often treats family firms as homogeneous and reveals the limitation of a dichotomous approach to family business. We conclude by discussing the implications and theoretical contributions of this study and offering future research directions.en_US
dc.language.isootheren_US
dc.relation.isreferencedbyhttps://www.kci.go.kr/kciportal/ci/sereArticleSearch/ciSereArtiView.kci?sereArticleSearchBean.artiId=ART002535612en_US
dc.subjectCorporate social responsibilityen_US
dc.subjectCorporate social contributionen_US
dc.subjectFamily businessen_US
dc.subjectFamily governanceen_US
dc.subjectFamily visibilityen_US
dc.subjectSocio-emotional property perspectiveen_US
dc.subjectAgent theoryen_US
dc.subjectCorporate social responsibilityen_US
dc.subjectCorporate philanthropyen_US
dc.subjectFamily businessen_US
dc.subjectFamily governanceen_US
dc.subjectFamily visibilityen_US
dc.subjectSocioemotional wealth perspectiveen_US
dc.subjectAgency theoryen_US
dc.titleHow does family governance shape corporate philanthropy? Interaction effects between family ownership and management controlsen_US
dc.status.refereedYesen_US
dc.date.Accepted2019-10-30
dc.typeArticleen_US
dc.type.versionNo full-text in the repositoryen_US
dc.date.updated2020-11-18T23:20:44Z
refterms.dateFOA2020-12-07T17:14:57Z


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