Does CSR facilitate access to trade credit? The role of family ownership

Abstract

Building on the socioemotional wealth theory, this study examines the influence of family ownership and corporate social responsibility (CSR) on trade credit. We argue that the intention to preserve family control, the preference for long-lasting relationships, and the desire to accumulate social capital lead family firms to opt for trade credit. Family firms’ peculiarities are also expected to condition the CSR-trade credit link. In addition, we account for the fact that some CSR practices are particularly aimed at external stakeholders. Our analyses rely on a sample of European listed firms from 2008 to 2020 and our empirical evidence confirms a positive effect of family ownership and CSR on trade credit. Going a step further, our results highlight the moderating role of family ownership in the relationship between CSR and firm’s access to trade credit. In fact, the positive effect of CSR on trade credit seems to be exclusively attributable to family firms. We also report that CSR policies oriented towards external stakeholders are linked to greater use of trade credit, with family firms explaining the positive impact of external CSR.