Socioemotional Wealth and Sustainable Earnings: Evidence from Emerging Markets
Abstract
This study strives to determine the influence of socioemotional wealth on sustainable earnings. The sample of the study was family firms from emerging Asian markets. By using the Feasible generalized least square method and quantile regression technique for panel data, the analysis reveals that SEW has been an essential ingredient in making the family firms attractive in the short and long run persistent earnings. The research study is novel as no similar study has been conducted explicitly on the socioemotional wealth and sustainable earnings for emerging Asian economies. Understanding the relationship between Socioemotional Wealth and persistent earnings is vital for firms as it describes how non-financial factors, such as family control, emotional connections, and dynastic succession, impact the family firm's long-term financial performance and sustainability. The results from this study can direct family-owned businesses in balancing socioemotional goals with financial objectives, influencing succession planning, relationships, and strategic decisions to ensure the preservation and enhancement of socioemotional wealth over time. The results conform to those obtained by scholars for both developed and emerging country cases. The other conventional variables included in the model generated the expected signs and results.
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