Family firms, minority investor protection and firm performance
| Dependent variable: Tobin’s Q | ||||||||
|---|---|---|---|---|---|---|---|---|
| Independent variables | (I) | (II) | (III) | (IV) | (V) | (VI) | (VII) | (VIII) |
| (Intercept) | 1.44915 (***) (0.338) | 1.58130 (***) (0.347) | 1.50579 (***) (0.337) | 1.57498 (***) (0.346) | 1.57446 (***) (0.346) | 1.49408 (***) (0.334) | 1.39901 (***) (0.325) | 1.33747 (***) (0.327) |
| Size | −0.01215 (0.022) | −0.02214 (0.022) | −0.01486 (0.022) | −0.02389 (0.022) | −0.02110 (0.021) | −0.01484 (0.021) | −0.00958 (0.022) | −0.00396 (0.022) |
| Diversification | −0.18999 (**) (0.093) | −0.14757 (*) (0.089) | −0.15650 (*) (0.089) | −0.14804 (*) (0.089) | −0.14902 (*) (0.088) | −0.15844 (*) (0.088) | −0.17056 (*) (0.088) | −0.17880 (**) (0.089) |
| Sales growth | 0.15230 (0.119) | 0.15326 (0.119) | 0.14217 (0.119) | 0.15658 (0.119) | 0.15239 (0.119) | 0.14341 (0.118) | 0.13193 (0.115) | 0.13698 (0.114) |
| Firm age | −0.08331 (**) (0.033) | −0.07976 (**) (0.032) | −0.06159 (*) (0.033) | −0.08084 (**) (0.033) | −0.08009 (**) (0.033) | −0.06277 (*) (0.033) | −0.06563 (**) (0.033) | −0.06413 (*) (0.033) |
| Profitability | 3.95223 (***) (0.670) | 3.99437 (***) (0.649) | 3.98292 (***) (0.644) | 3.98207 (***) (0.653) | 4.00700 (***) (0.649) | 3.98963 (***) (0.646) | 4.01505 (***) (0.641) | 4.02076 (***) (0.642) |
| Liquidity | 0.64472 (***) (0.234) | 0.69001 (***) (0.230) | 0.72900 (***) (0.230) | 0.70021 (***) (0.229) | 0.68960 (***) (0.230) | 0.73502 (***) (0.229) | 0.76626 (***) (0.227) | 0.80698 (***) (0.226) |
| Investments | 4.26924 (***) (0.834) | 4.31625 (***) (0.851) | 4.35484 (***) (0.833) | 4.34543 (***) (0.844) | 4.34362 (***) (0.845) | 4.40577 (***) (0.820) | 4.44109 (***) (0.816) | 4.46156 (***) (0.815) |
| Tangibility | −1.45988 (***) (0.194) | −1.44831 (***) (0.193) | −1.48482 (***) (0.188) | −1.46029 (***) (0.192) | −1.45290 (***) (0.193) | −1.49786 (***) (0.188) | −1.47726 (***) (0.192) | −1.47178 (***) (0.193) |
| R&D | 4.50037 (***) (0.703) | 4.33149 (***) (0.712) | 4.38187 (***) (0.709) | 4.32386 (***) (0.711) | 4.34099 (***) (0.712) | 4.38766 (***) (0.709) | 4.44354 (***) (0.711) | 4.43247 (***) (0.709) |
| Leverage | 0.00437 (0.223) | 0.00816 (0.221) | −0.00879 (0.216) | 0.01533 (0.221) | 0.00644 (0.221) | −0.00599 (0.216) | −0.01666 (0.213) | −0.02895 (0.213) |
| Family firm | −0.20426 (**) (0.081) | −0.11627 (0.084) | −0.19584 (**) (0.081) | −0.21823 (**) (0.085) | −0.12753 (0.087) | −0.03459 (0.106) | −0.07348 (0.109) | |
| Dual class | −0.31120 (***) (0.087) | −0.30944 (***) (0.089) | −0.08840 (0.079) | −0.08072 (0.080) | ||||
| Voting rights restrictions | 0.05665 (0.078) | 0.03726 (0.077) | 0.04961 (0.094) | 0.04843 (0.093) | ||||
| Opting out/up | 0.04433 (0.094) | 0.05177 (0.091) | 0.17102 (0.139) | 0.17632 (0.139) | ||||
| Family firm × dual class | −0.33045 (**) (0.144) | −0.28964 (**) (0.144) | ||||||
| Family firm × voting rights restrictions | −0.00760 (0.151) | 0.10027 (0.171) | ||||||
| Family firm × opting out/up | −0.17026 (0.185) | −0.12461 (0.189) | ||||||
| Family firm × dual class × voting rights restrictions × opting out/opting up | −0.45156 (**) (0.225) | |||||||
| Fixed effects | Industry, years | Industry, years | Industry, years | Industry, years | Industry, years | Industry, years | Industry, years | Industry, years |
| Multiple R2 | 41.8% | 42.5% | 43.5% | 42.5% | 42.5% | 43.5% | 43.9% | 44.0% |
| Adjusted R2 | 41.2% | 41.9% | 42.9% | 41.9% | 41.9% | 42.9% | 43.2% | 43.4% |
| F-statistic | 75.2*** | 75.5*** | 76.9*** | 73.9*** | 73.9*** | 73.7*** | 70.0*** | 69.1*** |
| Dependent variable: Tobin’s | ||||||||
|---|---|---|---|---|---|---|---|---|
| Independent variables | (I) | ( | ( | ( | (V) | ( | ( | ( |
| (Intercept) | 1.44915 ( | 1.58130 ( | 1.50579 ( | 1.57498 ( | 1.57446 ( | 1.49408 ( | 1.39901 ( | 1.33747 ( |
| Size | −0.01215 (0.022) | −0.02214 (0.022) | −0.01486 (0.022) | −0.02389 (0.022) | −0.02110 (0.021) | −0.01484 (0.021) | −0.00958 (0.022) | −0.00396 (0.022) |
| Diversification | −0.18999 ( | −0.14757 ( | −0.15650 ( | −0.14804 ( | −0.14902 ( | −0.15844 ( | −0.17056 ( | −0.17880 ( |
| Sales growth | 0.15230 (0.119) | 0.15326 (0.119) | 0.14217 (0.119) | 0.15658 (0.119) | 0.15239 (0.119) | 0.14341 (0.118) | 0.13193 (0.115) | 0.13698 (0.114) |
| Firm age | −0.08331 ( | −0.07976 ( | −0.06159 ( | −0.08084 ( | −0.08009 ( | −0.06277 ( | −0.06563 ( | −0.06413 ( |
| Profitability | 3.95223 ( | 3.99437 ( | 3.98292 ( | 3.98207 ( | 4.00700 ( | 3.98963 ( | 4.01505 ( | 4.02076 ( |
| Liquidity | 0.64472 ( | 0.69001 ( | 0.72900 ( | 0.70021 ( | 0.68960 ( | 0.73502 ( | 0.76626 ( | 0.80698 ( |
| Investments | 4.26924 ( | 4.31625 ( | 4.35484 ( | 4.34543 ( | 4.34362 ( | 4.40577 ( | 4.44109 ( | 4.46156 ( |
| Tangibility | −1.45988 ( | −1.44831 ( | −1.48482 ( | −1.46029 ( | −1.45290 ( | −1.49786 ( | −1.47726 ( | −1.47178 ( |
| R&D | 4.50037 ( | 4.33149 ( | 4.38187 ( | 4.32386 ( | 4.34099 ( | 4.38766 ( | 4.44354 ( | 4.43247 ( |
| Leverage | 0.00437 (0.223) | 0.00816 (0.221) | −0.00879 (0.216) | 0.01533 (0.221) | 0.00644 (0.221) | −0.00599 (0.216) | −0.01666 (0.213) | −0.02895 (0.213) |
| Family firm | −0.20426 ( | −0.11627 (0.084) | −0.19584 ( | −0.21823 ( | −0.12753 (0.087) | −0.03459 (0.106) | −0.07348 (0.109) | |
| Dual class | −0.31120 ( | −0.30944 ( | −0.08840 (0.079) | −0.08072 (0.080) | ||||
| Voting rights restrictions | 0.05665 (0.078) | 0.03726 (0.077) | 0.04961 (0.094) | 0.04843 (0.093) | ||||
| Opting out/up | 0.04433 (0.094) | 0.05177 (0.091) | 0.17102 (0.139) | 0.17632 (0.139) | ||||
| Family firm × dual class | −0.33045 ( | −0.28964 ( | ||||||
| Family firm × voting rights restrictions | −0.00760 (0.151) | 0.10027 (0.171) | ||||||
| Family firm × opting out/up | −0.17026 (0.185) | −0.12461 (0.189) | ||||||
| Family firm × dual class × voting rights restrictions × opting out/opting up | −0.45156 ( | |||||||
| Multiple | 41.8% | 42.5% | 43.5% | 42.5% | 42.5% | 43.5% | 43.9% | 44.0% |
| Adjusted | 41.2% | 41.9% | 42.9% | 41.9% | 41.9% | 42.9% | 43.2% | 43.4% |
| 75.2 | 75.5 | 76.9 | 73.9 | 73.9 | 73.7 | 70.0 | 69.1 | |
The table presents OLS coefficient estimates for Tobin’s Q. The sample is based on 4,444 firm-year observations from 1998 to 2023. Cluster-robust Huber/White standard errors are reported in parentheses, and significance at the 1, 5 and 10% levels is indicated by ***, ** and * respectively
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