## Main### The Impact of Defamilization on Green Innovation: Evidence from SRDI Family Firms in China### First Subtopic**Corporate Governance as a Mediating Factor**Research has demonstrated that family-controlled firms prioritize non-economic objectives, which aligns with green innovation as it underscores long-term societal benefits. Nevertheless, the gradual reduction in the involvement of founding family members and the subsequent dilution of family equity weaken the original long-term orientation. This shift is accompanied by an increased emphasis on short-term financial performance. Non-family executives and investors, driven by their pursuit of SRDI-specific objectives, may neglect green innovation's long-term focus due to its inherent risk and resource intensiveness. Corporate governance, with its internal and external mechanisms, can partially mask the adverse effects of defamilization on green innovation. Defamilization of management (DFM) introduces professional managers with specialized knowledge, establishing an efficient management control system that enhances the effectiveness of corporate governance, particularly in terms of supervision and incentives. Defamilization of ownership (DFO) diversifies the ownership structure, further strengthening governance's supervisory role. In summary, while corporate governance can alleviate the adverse consequences of defamilization, it cannot fully mitigate the short-sighted behavior of non-family executives or address resource constraints on green innovation. Therefore, defamilization continues to exert a negative influence on green innovation, albeit partially masked by the mitigating role of corporate governance.### Second Subtopic**Moderating Effects of Digital Transformation and Market Concentration****Digital Transformation**Digital transformation improves financial performance by enhancing information dissemination and streamlining transactions, thereby reducing external transaction costs and monitoring costs. It facilitates the attraction of external investments, addressing financial constraints faced by non-family executives and shareholders. Furthermore, it lowers information communication costs, allowing for better management of conflicts between core technology development and green innovation. As a result, digital transformation moderates the negative impact of defamilization on green innovation.**Market Concentration**Market concentration leads to the emergence of specialized enterprises with higher market shares and larger scales. These enterprises possess substantial financial resources and attract talented individuals, creating a strong competitive advantage in their technical domains. However, this advantage exacerbates the negative relationship between defamilization and green innovation, as non-family members prioritize survival and market share defense in situations of high market concentration.### Third Subtopic**Additional Analysis**The study also conducted a variety of additional analyses to validate the findings. These analyses examined the heterogeneity of defamilization's effects based on factors such as whether the firm was selected for the Little Giants list, government subsidies, geographic region, and classification as a key polluting enterprise. The results of these analyses consistently supported the main findings of the study.### ConclusionThe study concludes that both DFM and DFO inhibit green innovation in Chinese family firms. Corporate governance, while acting as a mediator, masks but does not fully rectify this negative effect. Digital transformation moderates the adverse impact of defamilization on green innovation, while market concentration exacerbates it. The study provides policymakers, corporate leaders, and family firms with actionable insights to strategically manage defamilization, optimize resource allocation, customize governance strategies, and promote sustainable growth.