Authors
Sadok El Ghoul, Omrane Guedhami, He Wang, Chuck CY Kwok
Publication date
2016/12/1
Journal
Journal of Banking & Finance
Volume
73
Pages
131-146
Publisher
North-Holland
Description
We investigate the impact of family control on corporate social responsibility (CSR) performance. Using newly collected data on the ultimate ownership structure of publicly traded firms in nine East Asian economies, we find that family-controlled firms exhibit lower CSR performance, consistent with the expropriation hypothesis of family control. The negative relationship between family control and CSR is robust to alternative measures of family control, different components of CSR, as well as to endogeneity tests, subsample tests, and alternative estimation methods. We further find that CSR underperformance concentrates in family firms with greater agency problems and in countries with weaker institutions. Moreover, the underperformance of East Asian family firms holds when controlling for the effects of other large shareholders and when comparing with family firms from other countries. These findings contribute to …
Total citations
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Scholar articles
S El Ghoul, O Guedhami, H Wang, CCY Kwok - Journal of Banking & Finance, 2016