## Main### Impact of De-Familization on Green Innovation#### Thesis Statement and Research QuestionsThis study investigates the impact of de-familization in management (DFM) and ownership (DFO) on green innovation in specialized-refined-differentiated-innovative (SRDI) family firms in China. We explore the mediating effect of corporate governance (CGL) and the moderating effects of digital transformation (Digi) and market concentration (Cr4).### Methodology#### Data Collection and SampleData for 786 enterprise-year observations (2016-2021) from A-share listed SRDI family firms was obtained from the WIND Information and CNRDS databases. Family firms were identified based on ownership concentration and family involvement in management.#### Variable Measurement- **Green Innovation (GI):** Natural logarithm of the sum of green invention patent applications.- **DFM:** Proportion of non-family executives.- **DFO:** Proportion of shares held by non-family shareholders.- **CGL:** Composite index based on shareholder balance, ownership nature, institutional investor shareholding, board independence, management shareholding, and executive compensation.- **Digi:** Index of artificial intelligence, big data, cloud computing, blockchain, and digital technology application.- **Cr4:** Sum of market shares held by the four largest companies in the industry.### Empirical Analysis#### Regression Analysis- DFM and DFO significantly negatively affect GI, indicating an inhibitory effect of de-familization on green innovation.- CGL partially mediates the negative impact of de-familization on GI through a "masking effect."#### Moderation Analysis- Digi mitigates the negative impact of de-familization on GI, suggesting that digital transformation enhances the willingness and capacity of non-family executives to engage in green innovation.- Cr4 exacerbates the negative impact of de-familization on GI, highlighting the challenge for family firms facing market concentration to allocate resources for green innovation.### Heterogeneity AnalysisThe negative impact of de-familization on green innovation is more pronounced in:- Enterprises not yet in the "Little Giants" list- Companies receiving higher government subsidies- Firms located in the eastern region- SRDI enterprises not classified as key polluting units### Discussion#### Theoretical ContributionsThis study extends the literature on green innovation by examining the role of de-familization and family governance. It contributes to socio-emotional wealth theory by identifying a masking effect of corporate governance in the relationship between de-familization and green innovation.#### Policy Implications- Promote tailored governance strategies for SRDI family firms.- Address financing challenges faced by non-family executives in pursuing green innovation through digital transformation.- Curb market concentration to avoid dampening green innovation in family firms.