Intergenerational Succession and Capital Occupation Behavior in Family Businesses

In China, as an increasing number of family businesses enter the phase of intergenerational succession, the influence of second-generation heirs on business operations during the early stages of their tenure has attracted significant attention and discussion. This paper examines family-controlled listed companies in China from 2010 to 2022, analyzing changes in capital occupation behavior through the lens of intergenerational succession events. The findings indicate that after second-generation heirs take over, the capital occupation behavior of family businesses is significantly reduced, and this suppressive effect remains robust even after conducting further analyses. Furthermore, the impact of intergenerational succession on capital occupation behavior diminishes in contexts characterized by intense industry competition, weak property rights protection, and lower educational qualifications of the successors. This research not only adds to the existing literature but also offers valuable insights for the oversight and management of capital occupation behavior in family businesses.