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This study aims to extend the research in the field of external investments in family firms. It contributes to the literature by analyzing the drivers of the family firm owner-managers selling a minority stake to a strategic investor. This type of external investment might be of great interest to family firms because the family firm owner-managers can secure control over the firm and preserve socioemotional wealth while simultaneously generating additional financing and gaining strategic and managerial know-how. Likewise, minority investments in family firms might also be of high interest to strategic investors, thus enabling close collaborations (e.g. in R&D, purchasing and sales) with minor equity investments.

This study tests the hypotheses using a vignette study leveraging 327 observations from family firm owner-managers.

Based on the socioemotional wealth perspective, this study hypothesizes that the degree of family prominence, the degree of employee orientation and pure family management influence the willingness to sell. In addition, this study hypothesizes that the moderating effect of a below-average financial performance weakens the abovementioned direct effects. This study finds support for most hypotheses.

This study extends the research in the field of external investments in family firms. It contributes to the literature by analyzing the drivers of the family firm owner-managers selling a minority stake to a strategic investor.

This study aims to explore the reasons why some Chinese private entrepreneurs are reluctant to make charitable donations, with a focus on the perspective of “original sin” suspicion. The objective of this paper is to examine the challenges faced by these entrepreneurs, especially those suspected of “original sin,” when making charitable donations, and to provide recommendations for addressing these challenges.

Using data from the Chinese Private Enterprises Survey Database for the years 2008, 2010, 2012 and 2014, this study used ordinary least squares regression to examine the relationship between “original sin” suspicion and charitable donations from private enterprises.

This study examined the impact of “original sin” suspicion on charitable donations and found that it significantly reduces the donations of privatized enterprises. The negative impact of “original sin” suspicion on charitable donations is especially pronounced in small and medium-sized enterprises (SMEs), as well as those that have experienced changes in local leadership.

While previous research focused on the motivations of private enterprises that donated, they failed to identify which types of enterprises were reluctant to donate and why. By focusing on the “original sin” suspicion surrounding entrepreneurs in privatized enterprises and the political costs they face, this study sheds light on the challenges they encounter in charitable donations and explains why privatized enterprises, especially SMEs, are unwilling to make charitable donations.