Kinship intensity and ESG performance: the role of socioemotional wealth in family businesses

This study examines how family embeddedness affects ESG performance in family businesses. Using socioemotional wealth theory, it finds that higher kinship intensity in the board leads to fewer financial constraints, a long-term management perspective, and stronger internal controls, all of which significantly enhance ESG performance. Data from Chinese A-share listed family businesses support these findings and reveal the underlying mechanisms. This research provides new insights into the unique governance role of family businesses and their ability to improve ESG performance by balancing economic efficiency with socioemotional wealth.