Institutional Efficiency,Family-based Routes and Family Investment Preference

This paper studies the effect of family control on corporate investment decision-making under the background of transitional and emerging economy from the angle of investment decision-making of family firms.It finds that family controller's preference for risk aversion dominates in the investment decision-making,and the long-term investment scales of family firms,which prefer physical capital investment and restrict RD investment with high risk,are smaller than the ones of non-family firms;and the effect of family preference for risk aversion on the short-term investment behavior is more significant in family firms which are founded by mergers and acquisitions and whose CEOs are professional managers;high institutional efficiency can reduce family controller's motive for risk aversion and promote corporate investment.