Corporate social responsibility, family firms and financial market quality

This thesis examines the factors driving businesses to engage in Corporate Social Responsibility (CSR) and achieve Corporate Social Performance (CSP), focusing on ownership structure, country-level governance, and financial market quality. It investigates the differences in social and environmental performance and financial consequences between family and non-family firms in different institutional contexts.

Chapter 2 investigates the impact of country-level shareholder protection on CSP of family firms compared with non-family firms. The study finds that stronger minority shareholder protection reduces family firms' focus on their own interests, resulting in a smaller CSP difference between family and non-family firms, while stronger shareholders' rights increase their focus on their own interests, resulting in a greater CSP difference between family and non-family firms.

Chapter 3 examines the relationship between firms needing external financing and carbon emission disclosure. The results support the prediction that firms with higher net external financing needs disclose their carbon emissions more, enabling them to access capital at lower costs. Moreover, in countries with low financial development, firms with high external financing needs are more likely to increase their carbon disclosure.

Chapter 4 examines the impact of family ownership on carbon emissions and firms' financial performance. The study finds that family firms with lower family control tend to make less effort, while those with higher control participate more in carbon emission reduction strategies. The analysis shows that more polluting family firms with a high level of control perform worse than less polluting similar family firms and non-family firms.