This study examines how socioemotional wealth affects the cash holding policy in family-controlled firms for Taiwan’s listed firms. We posit that the cash holding policy for family firms are driven by a diverse set of family owners’ motives that can be synthesized in the preservation of the different forms of the family socioemotional wealth (SEW). Specifically, we posit that the cash holding policy for family firms would vary depending on three dimensions of family SEW, namely, the identity dimension, the control dimension and the generation stage dimension. We posit and find that identity-focused and founder-led family firms exhibit less cash holdings relative to other family firms, while control-focused and descendant-led family firms exhibit more cash holdings relative to other family firms. Furthermore, we find that the monitoring mechanisms embedded in the agency framework strengthen the negative impact of family identity and the founder generation on cash holdings, while these mechanisms mitigate the positive impact of family control and the successor generation on cash holdings.