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Family Business, ESG, and Firm Age in the GCC Corporations: Building on the Socioemotional Wealth (SEW) Model

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  • Khalil Nimer

    (Department of Accounting and MIS, College of Business Administration, Gulf University for Science & Technology, Mubarak Al-Abdullah P.O. Box 7207, Kuwait)

  • Naser Abughazaleh

    (Department of Accounting and MIS, College of Business Administration, Gulf University for Science & Technology, Mubarak Al-Abdullah P.O. Box 7207, Kuwait)

  • Yasean Tahat

    (Department of Accounting and MIS, College of Business Administration, Gulf University for Science & Technology, Mubarak Al-Abdullah P.O. Box 7207, Kuwait)

  • Mohammed Hossain

    (Department of Accounting and MIS, College of Business Administration, Gulf University for Science & Technology, Mubarak Al-Abdullah P.O. Box 7207, Kuwait)

Abstract

This study investigates the relationship between private family control (excluding state and royal) and Environmental, Social, and Governance (ESG) performance among publicly listed firms in the Gulf Cooperation Council (GCC), focusing specifically on the moderating role of firm age. Employing multivariate POLS regression analysis on data from 2016 to 2021 and controlling for established firm-specific variables, we find a robust negative association between private family control and ESG performance, consistent with Socioemotional Wealth (SEW) perspectives where family-centric goals may override broader stakeholder interests. Critically, our results demonstrate that firm age significantly and positively moderates this negative relationship; the detrimental impact of family control on ESG performance attenuates considerably as family firms mature. This attenuation likely reflects the development of sophisticated governance structures, a heightened focus on long-term reputation and SEW preservation, and potential generational shifts towards sustainability values within older firms. Providing the first empirical test of this age moderation effect within the under-researched GCC context, this research extends SEW theory by highlighting the dynamic evolution of family firm sustainability engagement over the lifecycle in a non-Western setting and contributes novel insights to the accounting literature. These findings underscore the need for targeted policies and interventions to foster ESG adoption, particularly among younger private family firms in the GCC, offering valuable insights for regulators, investors, family business owners, and practitioners aiming to foster responsible sustainability practices.

Suggested Citation

  • Khalil Nimer & Naser Abughazaleh & Yasean Tahat & Mohammed Hossain, 2025. "Family Business, ESG, and Firm Age in the GCC Corporations: Building on the Socioemotional Wealth (SEW) Model," JRFM, MDPI, vol. 18(5), pages 1-21, May.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:5:p:241-:d:1647652
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    References listed on IDEAS

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