Family Control And Corporate Environmental Behavior

Since the reform and opening up,China’s economy has developed rapidly,but behind the rapid development there are also serious environmental pollution problems.How to achieve the goal of environmental protection efficiently has become an urgent problem.In order to achieve the goal of environmental protection,enterprises are an important force that can not be ignored.As an important part of private economy,the study of family business environmental violations is of great theoretical and practical significance for enriching and deepening the research of family business and providing theoretical basis for the government to formulate environmental policies.Therefore,based on the socioemotional wealth theory and from the perspective of family control,this paper focuses on the decision-making logic of family business on environmental violations.And on this basis,it studies the influence of the second generation involvement and the process of regional marketization on the environmental violations of family business.Firstly,this paper reviews the literature related to family business and environmental social responsibility,and puts forward the research hypothesis from the perspective of family business’ s pursuit and retention of socioemotional wealth.Secondly,this paper selects 436 A-share listed manufacturing family enterprises from 2013 to 2019 as the research object,and makes an empirical analysis by establishing a fixed effect Poisson counting model.According to the results of empirical analysis,this paper has the following conclusions:(1)There is a negative correlation between the degree of family control and the number of environmental violations(2)Whether the second generation is involved or not has no significant moderating effect on the relationship between family control and corporate environmental violations,but the involvement years of the second generation will have an inverted U-shaped effect on them(3)The marketization process of the area where the family business is located will strengthen the negative relationship between the degree of family control and the number of environmental violations.Based on the empirical results of this paper,there are three theoretical contributions:(1)Based on the socioemotional wealth theory,this paper studies the impact of family control on environmental violations,which enriches the research on family business and environmental violations(2)Considering the factors of the second generation’s involvement in enterprise management enriches the research of the second generation’s involvement.(3)We discuss the factors of the marketization process in the region where the enterprise is located,and expands the boundary of the research on the marketization process.At the same time,this paper has the following policy implications:(1)for the family business pursuing socioemotional wealth,we can appropriately increase the proportion of family control,so as to better realize the environmental protection strategy of family business(2)Pay attention to the second generation of entrepreneurs and do a good job in family business education(3)The government should appropriately increase the illegal cost of environmental violations.