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Beyond cultural norms

How does historical rice farming affect modern firms' family control

Dados Bibliográficos

ID9727073
AutoresChenchen Fan (0000-0001-5511-8602, Shandong University of Finance and Economics), M Jiang (0000-0003-0779-9516, Shandong University, autor correspondente), Bo Zhang (0000-0003-0986-0018, Shandong University)
Ano2024
Volume91
Fascículo363
Páginas770-808
Data de publicação2024-07-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoEconomica (JOURNAL)
Identificadores do periódicoISSN: 0013-0427 • E-ISSN: 1468-0335
EditoraWiley (PUBLISHER • GB)
DOI10.1111/ecca.12519
OpenAlexW4392651088
IdiomaEN
Referências citadas73

The private sector contributes the majority of China's GDP, with family firms responsible for most of the contribution. Prior studies find that firms' family control is influenced by certain cultural norms, such as family ties. This study explores the underlying historical and agricultural roots of these cultural norms that influence modern businesses. Combining a set of high‐quality, nationally representative Chinese firm and household surveys with prefectural data, we first show the positive impact of rice farming on family control of local firms. We establish robust causal inferences by exploring the impact of historical agricultural legacies and discussing alternative measures, spatial autocorrelations, omitted variables, instrumental variables and self‐selection. More importantly, our results demonstrate that the rice cultivation practice enhances the local people's preferences for strong family ties. Instead of claiming a direct role of these cultural traits as in the existing literature, we recast them as cultural mediators and persistent channels through which historical rice farming can shape contemporary corporate structure

Affect (linguistics) · Agriculture · Business · China · Control (management) · Econometrics · Economic geography · Economics · Geography · Instrumental variable · Management · Quality (philosophy) · Sociology · Culture, Economy, and Development Studies · Family Business Performance and Succession

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