Table 7

Impact of second-, third- and fourth-generation family firms on ESG performance

Full sampleMatched sample
(1)(2)(3)(4)(5)(6)(7)(8)
VariableESGENVCGSOCESGENVCGSOC
2nd, 3rd, 4th generation4.148*** (3.20)9.635*** (5.41)3.211*** (3.06)5.802*** (3.68)1.822*** (2.71)5.964*** (2.71)2.178*** (3.63)3.055*** (2.97)
AGE0.116 (0.97)0.0672 (0.41)0.490*** (3.01)0.224 (1.54)0.182*** (3.36)0.276*** (3.40)0.697** (2.12)0.529* (1.84)
TA5.403*** (46.90)7.162*** (45.21)3.517*** (22.44)5.288*** (37.74)3.622*** (5.66)5.361*** (6.17)1.340*** (2.56)4.177*** (5.32)
Equity2.759*** (23.66)2.992*** (18.66)2.240*** (14.12)3.136*** (22.11)3.992*** (6.26)4.290*** (4.95)4.091*** (4.78)3.686*** (4.71)
Leverage5.545*** (9.18)2.859*** (3.44)6.780*** (8.25)5.938*** (8.08)7.652*** (2.56)7.244* (1.78)5.842 (1.46)9.134** (2.49)
ROA0.00400 (0.17)0.0475 (1.51)0.00689 (0.22)0.0252 (0.90)8.274** (2.09)7.897*** (2.57)16.70*** (3.14)4.812** (2.17)
IndustryYesYesYesYesYesYesYesYes
CountryYesYesYesYesYesYesYesYes
_cons−22.22*** (−26.79)−39.09*** (−34.27)−3.708** (−3.29)−22.55*** (−22.35)−18.01*** (−4.59)−37.41*** (−7.01)0.958 (0.18)−18.50*** (−3.84)
N23,22623,22623,22623,226779779779779
R20.4460.4140.1850.4100.5560.5120.3050.534
adj. R20.4450.4140.1840.4090.5360.4910.2740.514
Note(s):

This table presents regression results examining the influence of second-, third- and fourth-generation family firms on environmental, social and governance (ESG) performance. Columns (1)–(4) depict findings from the full sample, while Columns (5)–(8) focus on the matched sample, using propensity score matching to mitigate selection bias issue. *, ** and *** Indicate statistical significance at the 10, 5 and 1% levels, respectively

Source(s): Authors’ own work

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