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CEO power, internal control quality, and entrepreneurial innovation spirit in family enterprises

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  • Li, Weibin
  • Huang, Yingling
  • Zhou, Hongyong
  • Liu, Xin

Abstract

Using listed manufacturing enterprises in China from 2013 to 2020 as a sample, we find that CEO formal power, CEO integrated power, and internal control quality are positively and significantly related to the entrepreneurial innovation spirit of family businesses. CEO informal power, although not directly correlated, can enhance entrepreneurial innovation spirit by strengthening CEO formal power. In addition, internal control quality negatively regulates the relationship between CEO formal power and integrated power, and entrepreneurial innovation spirit. These findings highlight the incentive effects of CEO power and internal control on entrepreneurial innovation spirit in family enterprises, as well as the supervisory and inhibitory role of internal control over CEO power. This study contributes to the understanding of factors influencing entrepreneurial innovation spirit in family enterprises, focusing on CEO power and internal governance.

Suggested Citation

  • Li, Weibin & Huang, Yingling & Zhou, Hongyong & Liu, Xin, 2024. "CEO power, internal control quality, and entrepreneurial innovation spirit in family enterprises," International Review of Financial Analysis, Elsevier, vol. 95(PA).
    • Handle: RePEc:eee:finana:v:95:y:2024:i:pa:s1057521924002965
    DOI: 10.1016/j.irfa.2024.103364
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    References listed on IDEAS

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