Environmental, social, and governance reporting in family firms: The critical role of CEO attributes

Abstract Amid the global surge in emphasis on environmental, social, and governance (ESG) reporting, the response of family firms to these demands has been underexplored. Chief Executive Officers (CEOs) play an essential role in materializing and adhering to ESG‐related expectations from stakeholders. Anchored in upper echelons and socio‐emotional wealth theoretical frameworks, this study embarks on a novel investigation into the complex attributes of CEOs, aiming to deepen the understanding of their role in advocating for ESG principles. Employing a random effects model with robust standard errors, this research scrutinizes data from Malaysian family firms between 2018 and 2022. Findings reveal that CEO tenure, experience, and board interlocking positively correlate with ESG reporting, enhancing these family firms' sustainability profiles. In contrast, CEO ownership displays a negative correlation with ESG reporting, suggesting a potential conflict between personal ownership interests and broader ESG commitments. This study significantly contributes to the evolving discourse on ESG practices within family firms, highlighting the pivotal influence of distinct CEO attributes on the ESG reporting landscape.