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Can controlling family involvement promote firms to fulfill environmental responsibilities?—Evidence from China

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  • Benjiang Ma
  • Yanlin Wang
  • Zhifang Zhou
  • Yu Lai
  • Zhongmin Zhou
  • Muhammad Farhan Bashir

Abstract

Socioemotional wealth (SEW) suggests that family firms will pay more attention to social interests. Current research investigates how environmental responsibility is related to the family's involvement in environmental policymaking. Empirical analysis shows that the proportion of family ownership is negatively associated with the family firm's environmental responsibility. However, SEW will enhance environmental responsibility when a family member serves as the company's chairman. There is a significant inverted U‐shaped relationship between the length of family involvement and corporate environmental responsibility. We further discuss these relationships based on different types of environmental responsibility and family firms. This study expands the discussion on environmental responsibility management of family firms.

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  • Benjiang Ma & Yanlin Wang & Zhifang Zhou & Yu Lai & Zhongmin Zhou & Muhammad Farhan Bashir, 2022. "Can controlling family involvement promote firms to fulfill environmental responsibilities?—Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(2), pages 569-592, March.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:2:p:569-592
    DOI: 10.1002/mde.3403
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