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Corporate social responsibility and corporate financial performance: The role of executive directors in family firms

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  • Tenuta, Paolo
  • Cambrea, Domenico Rocco

Abstract

The paper investigates the impact of corporate social responsibility activities on corporate financial performance among Italian companies listed on the FTSE MIB at the Milan Exchange for the period 2013–2019, focusing on the moderating role of family control and executive directors. The empirical results show that corporate social responsibility (CSR) is negatively associated with family firms’ performance, suggesting the prevalence of the expropriation effect. However, the relationship between CSR and corporate financial performance is positively moderated by the presence of multiple executive members on the board of directors of family companies, confirming the benefits of shared leadership on family boards.

Suggested Citation

  • Tenuta, Paolo & Cambrea, Domenico Rocco, 2022. "Corporate social responsibility and corporate financial performance: The role of executive directors in family firms," Finance Research Letters, Elsevier, vol. 50(C).
    • Handle: RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322004019
    DOI: 10.1016/j.frl.2022.103195
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    2. Marcin Borsuk & Nicolas Eugster & Paul-Olivier Klein & Oskar Kowalewski, 2023. "Family Firms and Carbon Emissions," NBP Working Papers 361, Narodowy Bank Polski.
    3. Domenico Rocco Cambrea & Francesco Paolone & Nicola Cucari, 2023. "Advisory or monitoring role in ESG scenario: Which women directors are more influential in the Italian context?," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4299-4314, November.
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    5. Omer Saeed Habtoor, 2022. "Board Attributes and Bank Performance in Light of Saudi Corporate Governance Regulations," JRFM, MDPI, vol. 15(10), pages 1-27, September.

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