The Impact of Couple Social Capital Matching on R&D Investments in Family Firms

Abstract

This article takes A-share family firms in Shanghai and Shenzhen from 2008 to 2020 as research samples, examines the relationship between the couples with social capital matching (i. e CSCM) and R&D investment of family firms, and further explores the moderating effect of market attention. The results indicate that: (1) CSCM significantly reduces the R&D investment level of family firms. After considering endogeneity issues, this result remains robust. (2) Market attention moderates the relationship between CSCM and R&D investment. The higher the analyst and media attention, the smaller the inhibitory effect of CSCM on R&D investment. (3) The investment hindrance effect of CSCM exhibits heterogeneous characteristics. When local marital uncertainty is higher or familism culture is weaker, the inhibitory effect of CSCM on R&D investment is more pronounced. In addition, CSCM mainly generates a crowding out effect on R&D investment by stimulating equity competition between couples.

Keywords: Couple relationship, Social capital, R&D investment, family firms, Market attention