Impact of family involvement on internal and external corporate social responsibilities: Evidence from Chinese publicly listed firms

摘要

This study differentiates between internal corporate social responsibility (CSR) and external CSR to investigate the impact of family involvement on different dimensions of CSR. Using a sample of 2,114 Chinese listed firms, we show that family involvement is positively related to the level of firms' participation in external CSR but negatively related to the level of firms' participation in internal CSR. We further explore the roles of internal ownership structure and external institutional environment in influencing the incentives of family firms to invest in internal and external CSR. Results show that high levels of ownership balance and regional institutional development attenuate the negative effect of family involvement on internal CSR while a high level of regional institutional development strengthens the positive effect of family involvement on external CSR. These findings contribute to our understanding on the internal and external CSR strategies in family firms in emerging markets.