Welcome to Francis Academic Press

Academic Journal of Business & Management, 2023, 5(4); doi: 10.25236/AJBM.2023.050404.

Second generation characteristics and leverage ratio of family business


Yong Xia

Corresponding Author:
Yong Xia

School of Business, Nanjing Normal University, Nanjing, China


In the context of the wave of intergenerational inheritance, this paper studies the influence of the characteristics of the second generation on the leverage ratio of family firms based on the sample of family firms that realized intergenerational inheritance between 2008 and 2021. It is found that the second generation with economic management background is more inclined to equity financing, with lower leverage ratio. The second generation with overseas study background has a stronger preference for equity financing in external financing; The education level of the second generation has no significant influence on the leverage ratio of the family business. It is of great significance to train successors of family enterprises and construct reasonable capital structure.


second generation characteristics; Economics and management background; Overseas study background; Leverage ratio

Cite This Paper

Yong Xia. Second generation characteristics and leverage ratio of family business. Academic Journal of Business & Management (2023) Vol. 5, Issue 4: 18-23. https://doi.org/10.25236/AJBM.2023.050404.


[1] Yu Qianqian, Zhang Zhengtang, Zhang Yili. Tacit knowledge, willingness to hand over and intergenerational inheritance of family business [J].Management World,2013(11):77-88+188.

[2] Zhao Jing, Meng Weiwei. The influence of heir social capital on enterprise innovation in intergenerational inheritance [J].Journal of Chinese Minmin University,2016,30(03):91-105.

[3] Li Weining, Xu Shihao, Li Wei. Second-generation growth experience and family business combination entrepreneurship: Based on the perspective of imprint theory [J]. Foreign Economics and Management,2021,43(07):126-140.

[4] Huang Haijie, Lu Changjiang, Zhu Xiaowen. Second-generation intervention and enterprise innovation——Evidence from Chinese family-owned listed companies [J]. Nankai Management Review, 2018, 21(01):6-16.

[5] Yang Xuelei, LI Weining, Shang Hangbiao. The influence of second-generation overseas characteristics on family business portfolio entrepreneurship: from the perspective of intergenerational conflict [J].Science and Technology Progress and Countermeasures,2022, 39(01):110-120.

[6] Hambrick, D.C., Mason, P.A. Upper Echelons. Automatic Control & Computer Sciences, 1984, (1): 39-43.

[7] Dai Wei, Liu Yang, Liao Mingqing. Imprint effect: who in private enterprises is "not doing business"? Management World, 2016(05):99-115+187-188.

[8] Jensen, M., Zajac, E.J. Corporate Elites and Corporate Strategy: How Demographic Preferences and Structural Position Shape the Scope of the Firm.  Strategic Management Journal, 2004,25(6): 507-524.  

[9] Wang, M.C., Cheng, M.Y. “The performance Synergies between Science and Engineering and Business Management Backgrounds of Managers in High-tech Mutual Funds: Evidence from Taiwan”. International Review of Economics and Finance, 2014, 34(1):211-229.

[10] Zhu Xiaowen, Lu Changjiang. Intergenerational Inheritance of Family Businesses: Overseas or Domestic? Economic Research Journal, 2019, 54(01):68-84.

[11] Xu Gang. Background, policy opportunities and corporate financial investment preferences of senior executives [J].Journal of Zhongnan University of Economics and Law, 2018(01):33-41.

[12] He Ying, Yu Wenlei, Dai Yichi, Wang Yanyu. Executive career and corporate innovation [J]. Management World,2019,35(11):174-192.

[13] Li Xinchun, Zhang Pengxiang, Ye Wenping. Cognitive Differences of Second Generation Family and Strategic Adjustment of Enterprise Diversification: An Empirical Study Based on the Second Generation of Chinese Listed Family Enterprises Import Sample [J]. Journal of Sun Yat-sen University (Social Science Edition), 2016, 56(03):183-193.

[14] Anderson, R.C., Mansi, S.A., Reeb, D.M., Founding Family Ownership and the Agency Cost of Debt. Journal of Financial Economics, 2003, 68(2): 263-285. 

[15] Liu Bailu, Lu Changjiang. Research on the Effect of Family Ownership Allocation in Chinese Family Enterprises, Economic Research Journal, 2016, 51(11):140-152.