Abstract
Purpose: This study examines the behavior of family firms in relation to corporate waste management practices. The study also explores the implementation of the Sustainable Development Goals (SDGs) in 2015 as an exogenous shock that may influence waste management in family firms.
Design/methodology/approach: This study uses ordinary least squares (OLS), propensity score matching (PSM), and two-stage least squares (2SLS) estimators on a longitudinal panel dataset of French firms observed between 2004 and 2020 to test the association between family firms and waste management. Additionally, difference-in-differences (DiD) estimation is employed to assess the influence of the implementation of the SDGs in 2015 on waste management practices in these firms.
Findings: The findings demonstrate that family firms are more engaged in reducing waste generation and improving waste recycling. This result suggests that these firms prioritize sustainable initiatives that aim to preserve social legitimacy and family reputation. Further analyses show that waste generation (waste recycling) decreases (increases) with the voting rights held by the family, for families in the first-generation stage, and if a family member holds the position of the CEO or the chairperson of the board of directors. Additionally, the effect of family firms on waste production and waste recycling is more accentuated after the implementation of the SDGs, and in ecologically innovative firms.
Practical implications: Our results provide valuable insights for family firms to maintain their environmental commitment, especially during generational transitions or when appointing non-family members in leadership positions. In addition, policymakers should consider expanding the implementation of regulations and incentives that encourage family firms to adopt sustainable waste management practices.
Originality/value: This study is the first to test the nexus between family firms and waste management practices, by focusing on family firms’ dimensions, such as control, generational stage, and family involvement in management and the board.
Design/methodology/approach: This study uses ordinary least squares (OLS), propensity score matching (PSM), and two-stage least squares (2SLS) estimators on a longitudinal panel dataset of French firms observed between 2004 and 2020 to test the association between family firms and waste management. Additionally, difference-in-differences (DiD) estimation is employed to assess the influence of the implementation of the SDGs in 2015 on waste management practices in these firms.
Findings: The findings demonstrate that family firms are more engaged in reducing waste generation and improving waste recycling. This result suggests that these firms prioritize sustainable initiatives that aim to preserve social legitimacy and family reputation. Further analyses show that waste generation (waste recycling) decreases (increases) with the voting rights held by the family, for families in the first-generation stage, and if a family member holds the position of the CEO or the chairperson of the board of directors. Additionally, the effect of family firms on waste production and waste recycling is more accentuated after the implementation of the SDGs, and in ecologically innovative firms.
Practical implications: Our results provide valuable insights for family firms to maintain their environmental commitment, especially during generational transitions or when appointing non-family members in leadership positions. In addition, policymakers should consider expanding the implementation of regulations and incentives that encourage family firms to adopt sustainable waste management practices.
Originality/value: This study is the first to test the nexus between family firms and waste management practices, by focusing on family firms’ dimensions, such as control, generational stage, and family involvement in management and the board.
| Original language | English |
|---|---|
| Pages (from-to) | 1-27 |
| Number of pages | 28 |
| Journal | Journal of Accounting Literature |
| DOIs | |
| Publication status | Published - 9 Sept 2025 |
