Westudy whether prospective family succession shapes corporate philanthropy in Korean family business groups. Group-Succession firms increase charitable giving from an eventual heir’s entry into a group affiliate through the heir’sfirst executive promotion, with stronger effects near promotion. A theoretical framework predicts that giving mitigates legitimacy costs associated with prospective dynastic control, particularly when business groups face greater exposure to external social approval. Consistent with this prediction, the increase is concentrated in groups with greater social-approval exposure. Our findings identify prospective control transfer as a strategic determinant of corporate philanthropy and highlight an anticipatory, stakeholder facing dimension of family succession.
