How Family Character Affect the Financing of Environmental Protection Strategies and Energy-Saving Measures

Abstract

Family firms have been consolidating for years as a very important asset in most economies in the European Union. Developing from the influence of the family on the core objectives, these firms show specific features on how internal processes are developed. These differences may also be reflected in their attitude towards corporate social responsibility and environmental policies. The present paper focusses on their behaviour on environmental responsibility, specifically referring to the energy-saving issue. Empirical results, based on a sample of 1,771 Spanish manufacturing firms, show that the family character has a positive effect on the proactive environmental strategy. Moreover, different sources of finance may alter this main effect in various ways. Unpredictably, self-financing weakens the positive effect of family ownership on environmental protection and energy saving, whereas indebtedness is not a barrier, and public support strengthens the positive relationship. Our findings contribute to better understanding the involvement of family firms in responsible behaviour and the impact of different financial sources to promote the challenge of energy for the European Union.