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Sustainability Reporting in Family Firms: A Panel Data Analysis

Author

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  • Giovanna Gavana

    (Department of Economics, University of Insubria, 21100 Varese VA, Italy)

  • Pietro Gottardo

    (Department of Economics and Management, University of Pavia, 27100 Pavia PV, Italy)

  • Anna Maria Moisello

    (Department of Economics and Management, University of Pavia, 27100 Pavia PV, Italy)

Abstract

We analyze the largely unexplored differences in sustainability reporting within family businesses using a sample of 230 non-financial Italian listed firms for the period 2004–2013. Drawing on legitimacy theory and stakeholder theory, integrated with the socio-emotional wealth (SEW) approach, we study how family control, influence and identification shape a firm’s attitude towards disclosing its social and environmental behavior. Our results suggest that family firms are more sensitive to media exposure than their non-family counterparts and that family control enhances sustainability disclosure when it is associated to a family’s direct influence on the business, by the founder’s presence on the board or by having a family CEO. In cases of indirect influence, without family involvement on the board, the level of family ownership is negatively related to sustainability reporting. On the other hand, a formal identification of the family with the firm by business name does not significantly affect social disclosure.

Suggested Citation

  • Giovanna Gavana & Pietro Gottardo & Anna Maria Moisello, 2016. "Sustainability Reporting in Family Firms: A Panel Data Analysis," Sustainability, MDPI, vol. 9(1), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:9:y:2016:i:1:p:38-:d:86408
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