Family Ownership, Financial Performance, and Social Performance: A Stakeholder Salience View

Abstract

Employing an integrated framework from stakeholder salience and socioemotional wealth perspective, this study addresses family firms' heterogeneity on corporate social performance (CSP) issues by utilizing balanced panel data from 2007-2018. We found that family firms prioritize CSP dimensions (i.e., shareholder, employee, society, and environmental protection) as salient or not based on the socioemotional wealth concern (measured by the family ownership). Additionally, firm financial performance increases the positive relationship between family ownership and the overall CSP. Specifically, the moderating effect helps the shareholder, employee, and the society dimension of CSP. This study provides insights on realizing how and under what kind of conditions that family ownership matters on distinct aspects of CSP in family firms