Socioemotional wealth and corporate responses to institutional pressures: Do family-controlled firms pollute less?

Pascual Berrone, Cristina Cruz, Luis R. Gomez-Mejia, Martin Larraza-Kintana

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Abstract

This paper compares the environmental performance of family and nonfamily public corporations between 1998 and 2002, using a sample of 194 U.S. firms required to report their emissions. We found that family-controlled public firms protect their socioemotional wealth by having a better environmental performance than their nonfamily counterparts, particularly at the local level, and that for the nonfamily firms, stock ownership by the chief executive officer (CEO) has a negative environmental impact. We also found that the positive effect of family ownership on environmental performance persists independently of whether the CEO is a family member or serves both as CEO and board chair.

Original languageEnglish (US)
Pages (from-to)82-113
Number of pages32
JournalAdministrative Science Quarterly
Volume55
Issue number1
DOIs
StatePublished - Jan 1 2010

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ASJC Scopus subject areas

  • Arts and Humanities (miscellaneous)
  • Sociology and Political Science
  • Public Administration

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