Owners' Time Horizons and Firms' Environmental and Social Orientations: Evidence From Italian Private Manufacturing Firms

This study examines the relationship between ownership structure and sustainability practices in privately owned Italian manu- facturing firms. Using a dataset of 231 firms, we analyze how private equity and female ownership influence corporate environ- mental, internal social, and external social orientations. Our findings reveal that private equity ownership correlates positively with environmental orientation, as these investors prioritize practices that improve corporate value and mitigate risk. However, they tend to underinvest in external social initiatives, perceiving their benefits as long-term. In contrast, female ownership is linked to a stronger commitment to internal social responsibility. These results underscore the importance of corporate owner- ship in the shaping of sustainable corporate strategies and provide insights for both theory and practice.