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Family Ownership and Carbon Emissions

Author

Listed:
  • Marcin Borsuk

    (Institute of Economics, Polish Academy of Sciences, Poland; University of Cape Town, South Africa)

  • Nicolas Eugster

    (University of Queensland, Australia)

  • Paul-Olivier Klein

    (University of Lyon, France: Université Jean Moulin Lyon 3, iaelyon School of Management, UR Magellan. 1 av. des Frères Lumière, 69008 Lyon, France. Orcid: orcid.org/0000-0003-2403-5980)

  • Oskar Kowalewski

    (Institute of Economics, Polish Academy of Sciences, Poland IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Économie, F-59000 Lille, France)

Abstract

This study examines the relationship between family ownership and carbon emissions using a large cross-country dataset comprising 6,610 non-financial companies over the period 2010- 2019. We document that family firms display lower carbon emissions, both direct and indirect, when compared to non-family firms, suggesting a higher commitment to environmental protection by family owners. We show that this differential effect started following the 2015 Paris Agreement. Differences in governance structure, familial values, and higher spendings in R&D partly explain our results. Paradoxically, we find that family-owned firms and family CEOs commit less publicly to a reduction in their carbon emissions and have lower ESG scores, although polluting less. This suggests a lower participation in the public display of such an outcome and a lower tendency to greenwashing.

Suggested Citation

  • Marcin Borsuk & Nicolas Eugster & Paul-Olivier Klein & Oskar Kowalewski, 2023. "Family Ownership and Carbon Emissions," Working Papers 2023-ACF-01, IESEG School of Management.
    • Handle: RePEc:ies:wpaper:f202301
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    More about this item

    Keywords

    : carbon emission; ESG; governance; family firms; greenwashing; climate change;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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