The Role of Family Ownership in Norm-Conforming Environmental Initiatives: Lessons from China

Abstract

Drawing on institutional theory and property rights literature, this paper examines how different types of ownership adopt norm-conforming environmental practices in China. We propose that compared to governmental owners and institutional investors, which align themselves with the state and financial logics, respectively, family owners will adhere to a community logic, given their emphasis on socioemotional elements and property expropriation concerns. Thus, they are prone to norm-conforming environmental practices. Using a sample of 622 Chinese firms over six years, we find general support for the notion that ownership types are strongly associated with the adoption of norm-conforming environmental practices.

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