11345: Eponymy, Reputation, and ESG Reporting in Private Family Firms (session 25518)

This study examines the role of reputation as a driver for voluntary environmental, social, and governance (ESG) disclosure in private firms, with a particular focus on eponymous firms. Using a sample of 2,769 Italian private family firms, we investigate whether the higher reputation concerns in eponymous firms lead to more frequent and substantive ESG disclosures. Our main findings reveal that eponymous firms are more likely to publish ESG reports compared to their non-eponymous counterparts, supporting the hypothesis that the former view ESG disclosure as an insurance mechanism to protect their reputation. We further examine settings where reputation concerns are intensified, such as firms with rare founder names, those with greater prior media visibility and positive press sentiment. Our evidence indicates that these factors amplify the relationship between eponymy and ESG disclosure, confirming that reputation insurance is a driver for our results. Next, we find that eponymous firms also implement a greater number of genuine ESG actions and initiatives, particularly in social and environmental areas, which reflects (and confirms) their commitment to safeguarding their pre-existing reputational capital through ESG disclosure. Overall, our study highlights the importance of reputation insurance as a key determinant of ESG disclosure in private firms.

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