Study Of Family Control And Corporate ESG Disclosure

Incorporate a wider range of stakeholder demands into decision-making and information disclosure,as environmental and social responsibility has grown in prominence in the corporate information disclosure landscape,guided by the idea of sustainable development and green low-carbon cycle development.The ESG report,a common form of corporate non-financial information disclosure,combines an organization’s performance in the areas of corporate governance,social responsibility,and the environment.This allows for a more thorough analysis of an organization’s social responsibility and level of sustainable development.Family businesses are now one of the most significant types of economic organizations in many nations.In the case of China,a huge number of family businesses are vying to be listed as a result of the development of SME and GEM boards,and their standing on the Chinese capital market is progressively rising.The level of ESG information disclosure and the sustainable and healthy development of China’s family enterprises,however,have been irreparably impacted by the concentration of management power,absurd job requirements,and nepotism.As a result,there is an urgent need to raise the level of ESG information disclosure.To eliminate information asymmetry,improve company reputation,reshape corporate culture,and support the healthy and sustainable growth of firms,family businesses must actively disclose ESG data.The amount of ESG information disclosure by family businesses must be successfully improved in order to raise the level of social responsibility in the private sector.This article uses Shanghai and Shenzhen A-share listed businesses in China from2010 to 2020 as research samples to empirically analyze the link between family control and ESG disclosure level and evaluate the effect of internal and external variables on family firms.First,the study discovers that family businesses disclose more ESG data than non-family businesses.When the associated robustness tests are run,the primary findings are unaffected and the amount of ESG disclosure rises as the depth of family control grows.Second,the mechanism "family control-manager short-sightedness-ESG disclosure" is developed,in which family control improves ESG disclosure by reducing managerial short-sightedness.Third,the study discovers that as family control increases,differences in corporate ESG disclosure result from differences in the degree of intergenerational inheritance and power separation,with family firms that experience intergenerational inheritance and low power separation displaying more positive ESG disclosure.The outside world also has an effect at the same time.Family businesses in areas with a developed institutional environment and high societal trust disclose ESG data more favorably.The results show that family firms prefer to disclose ESG information in descending order of corporate governance,social responsibility,and environmental responsibility.Secondly,their information disclosure is discussed separately in three dimensions: social,environmental,and corporate governance.The studies of family control on micro-firms and the factors influencing corporate ESG disclosure are both further expanded by this paper’s examination of the relationship between family control and the degree of corporate ESG disclosure.The impact of the external environment on family firms is examined at the micro-firm level,which helps governments support and improve their policies for businesses.In addition,the paper examines the moderating effect of special family firm characteristics on the disclosure of ESG information of family-controlled firms,which offers fresh suggestions for improving the monitoring and governance system of family firms.