ESG Score and Market Value: The Role of the Family Firm Evidence from the Italian Listed Market

Journal of Management and Sustainability Pub Date : 2024-01-23 DOI:10.5539/jms.v14n1p63

G. Bifulco, Riccardo Tiscini

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Abstract

In recent years, environmental, social, and governance (ESG) practices and disclosure has become a critical component of corporate finance and accounting. Indeed, increasingly, companies seek to demonstrate their accountability to the environment and society in order to meet the expectations of different stakeholders interested in ESG performance (Garcia-Sanchez & Garcia-Sanchez, 2020). Customers, regulators, employees, suppliers, social and activist groups, media and lenders are all potential stakeholders in sustainability accountability (Arif et al., 2021; Camilleri, 2015; Sajjad et al., 2020). Nevertheless, the shareholders, institutional investors and individuals, looking to invest their money in firms with sustainable finance goals and high levels of ESG performance (Lourenço et al., 2014). Companies are supposed to make and disclose sustainable initiatives in organizational decisions (Garcia-Sanchez et al., 2014) and managers convey the focus of their efforts towards a more sustainable environment and society paying much attention to ESG indicators (Broadstock et al., 2019). This paper investigates the value of ESG score for family firms (FF) and non-family firms (NFF). Stemming from previous studies (Martínez-Ferrero & Frías-Aceituno, 2015), ESG performance in family business context is still unexplored. Indeed, most of the scholars have focused their effort on exploring the adoption of FF’s non-financial disclosure while, to the best of our knowledge, no one has investigated the effect of the type of firm (family or non-family) in the relationship between non-financial performance (ESG) and financial performance. The results of the analyzes demonstrate that there is no significant relationship between non-financial performance (ESG performance) and the value of companies. Indeed, for both the hypotheses there is just a positive but non-significant correlation. This evidence was verified for both FF and NFF panel.

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环境、社会和公司治理得分与市场价值：家族企业的作用来自意大利上市市场的证据

近年来，环境、社会和治理（ESG）实践和披露已成为公司财务和会计的重要组成部分。事实上，越来越多的公司寻求展示其对环境和社会的责任，以满足对环境、社会和治理绩效感兴趣的不同利益相关者的期望（Garcia-Sanchez & Garcia-Sanchez，2020 年）。客户、监管机构、员工、供应商、社会团体和激进团体、媒体和贷款人都是可持续发展问责制的潜在利益相关者（Arif 等人，2021 年；Camilleri，2015 年；Sajjad 等人，2020 年）。然而，股东、机构投资者和个人都希望将资金投入到具有可持续金融目标和高水平环境、社会和公司治理绩效的公司（Lourenço 等人，2014 年）。公司应在组织决策中制定并披露可持续举措（Garcia-Sanchez 等人，2014 年），管理者也应传达他们努力实现更可持续的环境和社会的重点，并对 ESG 指标给予极大关注（Broadstock 等人，2019 年）。本文研究了家族企业（FF）和非家族企业（NFF）的ESG得分价值。从以往的研究来看（Martínez-Ferrero & Frías-Aceituno，2015 年），家族企业背景下的 ESG 表现仍未得到探讨。事实上，大多数学者都将精力集中在探索 FF 非财务信息披露的采用上，而据我们所知，还没有人研究过企业类型（家族或非家族）对非财务绩效（ESG）和财务绩效之间关系的影响。分析结果表明，非财务业绩（环境、社会和公司治理业绩）与公司价值之间没有显著关系。事实上，对于这两个假设来说，两者之间只存在正相关，但不显著。这一证据在 FF 和 NFF 面板上都得到了验证。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Journal of Management and Sustainability

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