Abstract
This paper firstly introduces green governance into the empirical research of family firms. Due to the fact that family firms have their own particularity in the principal agent and also have a strong desire to preserve social emotional wealth, this paper deeply studies the driving influence of family control on the green governance of family firms, and analyzes the moderating effect based on the political connection of executives. Taking the 2015–2017 Chinese family-listed firms that released social responsibility reports as the research sample, we find that family control contributes to the improvement of corporate green governance in family firms. However, the political connection of the actual controller weakens the effect of family control on the green governance of family firms. In addition, this research is also carried out under different situations, such as at the regional level and individual level. The research helps family firms give full play to their own advantages, guide the green governance practice of family firms, and improve the level of green governance.
Highlights
Since the 21st century, human society entered the fourth industrial revolution
In order to verify Hypothesis 1, this paper uses multiple regression method to study the relationship between family control and corporate green governance
It shows that the promotion of family control on green governance of listed firms is more significant under the weak political connection of the actual controllers, which verifies Hypothesis 2
Summary
Since the 21st century, human society entered the fourth industrial revolution. One of the major characteristics of the industrial revolution is the change of the development modes, that is, from the “black development” of the previous three industrial revolutions to the “green development” model of prudent consideration of ecological boundaries. In China, family-listed firms, as an important part of SMEs, play a very important role in the process of social economy development and have increasingly shown a powerful force over the 40 years of China’s Reform and Opening-up, shouldering the important responsibility and obligation of the whole society. This paper draws lessons from the relevant measures from domestic and international social responsibility and environment performance, breaking through the limitations of previous questionnaire surveys It reveals the internal drive of family involvement in family business to green governance, and clarifies the possible adjustment of the political connection. At the same time, combined with a variety of situational factors to discuss, this paper makes up for the lack of Sustainability 2020, 12, 7068 existing literature, enriches the research of family business, provides theoretical and empirical support for family business to give full play to its advantages, and improve the level of green governance.
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