The influence of family ownership on the relationship between corporate social responsibility and financial performance: Evidence from Jordanian listed firms

Abstract

This research examines how family ownership (FO) moderates the relationship between corporate social responsibility (CSR) and financial performance (FP) within Jordanian publicly listed companies. A quantitative approach was utilized, analyzing panel data from companies listed in Jordan from 2018 to 2024.  Regression analysis and accounting for endogeneity were employed to examine the interaction between CSR and FO in influencing FP. The findings indicate that CSR has a positive effect on FP among Jordanian enterprises. Nonetheless, the moderating role of family ownership leads to a weaker relationship between CSR and FP in family-owned companies compared to non-family companies, suggesting that FO might limit the financial advantages obtained from CSR initiatives. CSR enhances FP in Jordanian enterprises and  is influenced by FO. Family-owned firms show a less significant relationship  between CSR and FP, potentially due to their internal governance focus or a long-term perspective. These results provide important insights for regulators, policymakers, and business leaders in emerging markets. Customized CSR initiatives that account for ownership structures could improve corporate sustainability and long-term value creation, particularly in family-controlled settings.