Family firm status and environmental disclosure: The moderating effect of board gender diversity

Abstract

Building on agency and resource‐based view theories, this study investigates the level of environmental disclosure (ED) practices of family versus non‐family firms and explores the moderating role of board gender diversity. We test our hypotheses on a 3‐year (2018–2020) panel data sample comprising 324 observations of Italian small‐ and medium‐sized enterprises traded on the Euronext Growth Milan. Findings show that, compared to non‐family firms, companies with a family firm status are characterized by lower levels of ED. Gender diversity on the board, however, moderates this relationship, reducing this gap, to the extent that the family firm status is associated with higher ED when the number of women directors is high enough to constitute a critical mass. We consequently contribute to the studies on family business, corporate governance, and corporate social responsibility.

Sustainability performance disclosure and family businesses: a perspective article

“…Their study reveals a negative association between internal control quality and audit report lag, with family directors moderating this relationship. Meanwhile, Maggi et al (2023) investigate environmental disclosure practices in family versus non-family firms and the moderating role of board gender diversity. Their research suggests that family firms tend to have lower levels of environmental disclosure, but the presence of gender-diverse boards narrows this gap, leading to higher environmental disclosure in family firms when a critical mass of women directors is present.…”

Diversified boards and the achievement of environmental, social, and governance goals

“…This resilience was particularly noticeable in the organizations hardest hit by the pandemic. In a further contribution to this discourse, Maggi et al (2023) analyzed environmental disclosure practices in family-and nonfamily-owned organizations, focusing on the impact of board gender diversity. They found that family-owned organizations generally had lower levels of environmental disclosure, but this gap was reduced when there was a critical mass of women directors on the board.…”

Guest editorial: Gender and entrepreneurial family business – decision-making, agency and empowerment

“…While women are often excluded from the succession process, some works have examined the role of women and daughters in succession planning (Cesaroni and Sentuti, 2018; Xian et al , 2021). Similarly, there is growing interest in looking at the impact of gender diversity in the family board of directors and board of governance, women's role in innovation and firm-level decision-making process (Maggi et al ., 2023; Ramadani et al ., 2017).…”