Corporate social responsibility and corporate financial performance: The role of executive directors in family firms

The paper investigates the impact of corporate social responsibility activities on corporate financial performance among Italian companies listed on the FTSE MIB at the Milan Exchange for the period 2013–2019, focusing on the moderating role of family control and executive directors. The empirical results show that corporate social responsibility (CSR) is negatively associated with family firms' performance, suggesting the prevalence of the expropriation effect. However, the relationship between CSR and corporate financial performance is positively moderated by the presence of multiple executive members on the board of directors of family companies, confirming the benefits of shared leadership on family boards.