Drawing on the Socioemotional Wealth theory, emphasizing firm reputation and stakeholder relationships, we hypothesize a positive link between second-generation involvement and environmental performance in family firms. We further propose that this relationship is strengthened when there is a high representation of non-family managers in the firm and when the firm is located in an environment characterized by strong market competition. Our empirical analysis, based on a survey of 612 private family firms in China, provides support for these hypotheses. In addition, an analysis of publicly listed family firms confirms our findings. Theoretical contributions and managerial implications are also discussed.