Table 6

Family firms, minority investor protection, board independence and firm performance

(1)(2)(3)(4)
Independent variablesTobin’s QFamily firmDual classFamily firm × dual class
Family firm−2.37992 (***) (0.602)0.36944 (***) (0.120)
Dual class5.66157 (***) (1.582)−0.12828 (0.115)
Voting rights restrictions−0.03750 (0.122)−0.16739 (***) (0.019)−0.02042 (0.024)−0.04608 (***) (0.013)
Opting out/up0.93962 (***) (0.155)0.35580 (***) (0.019)−0.04907 (0.044)0.12081 (***) (0.013)
Board independence0.34742 (0.256)−0.41394 (***) (0.045)−0.15226 (***) (0.051)−0.20226 (***) (0.023)
Family firm × dual class−4.53524 (**) (2.117)
Divorce rate−0.00883 (***) (0.001)
Political voting participation rate−0.00223 (***) (0.001)
People without religious affiliation−0.13461 (**) (0.063)
Control variablesIncludedIncludedIncludedIncluded
Fixed effectsIndustry, yearsIndustry, yearsIndustry, yearsIndustry, years
Note(s):

The table presents 3SLS estimates for Tobin’s Q, family firm, dual class and family firm × dual class. The sample is based on 3,207 firm-year observations from 2005 to 2023. Standard errors are reported in parentheses, and significance at the 1, 5 and 10% levels is indicated by ***, ** and * respectively

Source(s): Authors’ own work

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