Identifying the factors affecting organizational sustainability is a crucial topic in the field of social science and business research. Especially in family businesses, the most crucial issue is how to maintain corporate sustainability across generations. In this regard, succession planning plays a key role in maintaining the sustainable development of family businesses. From the perspective of socioemotional wealth, this study discusses the motivations and consequences of intrafamily succession by measuring the impact of the internal determining factors of succession planning on family business performance. Based on a sample of 281 Chinese family firms, this study uncovers the relationship between succession planning and organizational performance. The core findings of this study include succession planning is positively related to organizational performance in the matter of the successor’s training; succession planning has a positive effect on organizational performance in terms of the successor’s self-preparation; and succession planning is positively correlated with organizational performance in the aspect of the relationship between the successor and business. By illustrating that the formulation of succession planning is an essential pursuit for family businesses to preserve sustainability and socioemotional wealth, the results reveal ways to facilitate succession planning through internal factors in the family business. This study contributes to organizational sustainable development literature, family business sustainability studies, and succession management research by validating the positive relationship between succession planning and organizational performance, indicating that succession planning is a vital driving force for achieving organizational sustainability.

Purpose: The purpose of this paper is to investigate the effect of internal control (IC) on earnings quality from the perspective of the capital market. Specifically, it examines the effect of IC on earnings response coefficients. Design/methodology/approach: This study uses the moderated regression analysis on a sample of 1,310 Chinese listed firms on the Shanghai Stock Exchange (SSE) from 2020 to 2022. It employed an earnings response coefficient model by Holthausen and Verrecchia (1988) and used the IC score produced by the index created by the Shenzhen Dibo Enterprise Risk Management Technology, i.e. DIB IC, and risk management database. Findings: The study finds that the capital market placed lower earnings reliability on companies with high IC. This suggests that investors perceived negatively on the IC score of China listed companies, possibly due to their negative perception on the reason for implementation of high IC by those companies. A high IC score may raise suspicion amongst investors that the company has internal issues. Research limitations/implications: This study adds to the limited studies on less regulated internal governance mechanisms from the perspective of the capital market. The contradictory result suggests the need for more studies before deriving a solid conclusion. Originality/value: This study focusses on the under research area of IC rather than the common board of directors and from the perspective of Chinese economies, limited studies of developed countries.

Purpose: This study examines the impact of corporate governance on succession planning and organizational performance. Drawing on agency theory, the main purpose of this study is to identify the effect of corporate governance on succession planning by measuring the different characteristics of the board of directors.Design/methodology/approach: This multi-quantitative research used primary and archival data. A total of 281 valid questionnaires were collected from Chinese listed family firms to gauge succession planning. Relevant archival data were obtained to measure board characteristics and organizational performance. All hypotheses were examined through structural equation modeling.Findings: The outcomes indicate that corporate governance positively influences succession planning and, in turn, boosts superior organizational performance, which uncovers the mediating effect of succession planning on the relationship between corporate governance and organizational performance. Our findings reveal that board independence and education facilitate the development of succession planning, which is crucial in the family business’s life cycle.Originality/value: The results of this study contribute to management succession, strategic management and leadership research by demonstrating how corporate governance fosters organizational performance through succession planning, thereby expanding the application scenarios of agency theory in family firms. Additionally, the article also enriches our understanding of how family businesses apply sound governance structures to promote organizational strategic decision-making during the succession process.

HRMARS is well established journal publisher based in Pakistan. It is publishing prominent journals in social sciences since 2011.

HRMARS is well established journal publisher based in Pakistan. It is publishing prominent journals in social sciences since 2011.

HRMARS is well established journal publisher based in Pakistan. It is publishing prominent journals in social sciences since 2011.