Table 9.3. Regression Analysis of...

Table 9.3.

Regression Analysis of Financial Performance.

FINANCIAL PERFORMANCE	β	β	β	β	β	β	β	β	β	β	β	β	β	β	β	β	β
Formal board of directors		0.052
Formal board x Independent assessment of board			0.103*
Formal advisory board				0.123**
Evaluation of management performance					0.074
Policy for selection, remuneration & promotion of family employees						−0.010
Shareholders’ agreement							0.012
Formal reporting of business matters to shareholders								0.129**
Formal reporting of business matters to family members									0.182***
Family council										0.126**
Family constitution / code of conduct											0.138**
Process for welcoming, educating, inducting family members into business												0.131**
Process for incorporating family vision / objectives into business planning													0.041
Succession plan - Unifying strategy for the future of the business														0.079
Succession plan – CEO															0.112**
Succession plan - Other senior positions held by family members																0.105*
Succession plan - Estate plans (inc. how ownership will be distributed)																	−0.017
Firm age	−0.037	−0.066	−0.052	−0.039	−0.061	−0.057	−0.055	−0.044	−0.053	0.062	−0.059	−0.059	−0.054	−0.050	−0.062	−0.050	−0.049
Firm size	0.125**	0.094	0.084	0.080	0.056	0.107*	0.103*	0.070	0.056	0.096*	0.074	0.096*	0.107*	0.107*	0.103*	0.096*	0.119**
Industry_Agriculture	−0.025	−0.054	−0.053	−0.057	−0.051	−0.076	−0.061	−0.056	−0.066	−0.035	−0.034	−0.029	−0.035	−0.035	−0.041	−0.038	−0.035
Industry_Construction	−0.030	−0.041	−0.023	−0.043	−0.026	−0.060	−0.040	−0.042	−0.023	−0.020	−0.019	−0.014	−0.026	−0.030	−0.035	−0.028	−0.033
Industry_Manufacturing	−0.135**	−0.179***	−0.141**	−0.187***	−0.160**	−0.198***	−0.179***	−0.190***	−0.187***	−0.152**	−0.159**	−0.153**	−0.158**	−0.159**	−0.167***	−0.177***	−0.160**
Industry_Retail	−0.019	−0.044	−0.032	−0.025	−0.017	−0.031	−0.045	−0.012	−0.011	−0.002	−0.009	−0.003	−0.014	−0.017	−0.022	−0.021	−0.024
Industry_Wholesale	−0.007	−0.001	0.009	0.000	0.004	−0.003	0.005	−0.006	0.003	0.026	0.018	0.005	0.006	0.005	−0.002	0.008	0.008
Generation in control: 1st vs. 2nd+	0.030	0.067	0.069	0.066	0.081	0.085	0.068	0.039	0.077	0.057	0.055	0.066	0.061	0.060	0.063	0.062	0.062
R2	0.029	0.042	0.045	0.056	0.040	0.048	0.041	0.054	0.074	0.053	0.055	0.055	0.040	0.044	0.051	0.049	0.038
F statistic	1.470	1.560	1.787*	2.085**	1.479	1.672*	1.482	2.024**	2.833***	2.070**	2.152**	2.139**	1.533	1.659*	1.956**	1.888*	1.428
Observation	396	331	324	324	327	307	321	329	326	340	340	340	340	337	340	340	337

FINANCIAL PERFORMANCE	β	β	β	β	β	β	β	β	β	β	β	β	β	β	β	β	β
Formal board of directors		0.052
Formal board x Independent assessment of board			0.103*
Formal advisory board				0.123**
Evaluation of management performance					0.074
Policy for selection, remuneration & promotion of family employees						−0.010
Shareholders’ agreement							0.012
Formal reporting of business matters to shareholders								0.129**
Formal reporting of business matters to family members									0.182***
Family council										0.126**
Family constitution / code of conduct											0.138**
Process for welcoming, educating, inducting family members into business												0.131**
Process for incorporating family vision / objectives into business planning													0.041
Succession plan - Unifying strategy for the future of the business														0.079
Succession plan – CEO															0.112**
Succession plan - Other senior positions held by family members																0.105*
Succession plan - Estate plans (inc. how ownership will be distributed)																	−0.017
Firm age	−0.037	−0.066	−0.052	−0.039	−0.061	−0.057	−0.055	−0.044	−0.053	0.062	−0.059	−0.059	−0.054	−0.050	−0.062	−0.050	−0.049
Firm size	0.125**	0.094	0.084	0.080	0.056	0.107*	0.103*	0.070	0.056	0.096*	0.074	0.096*	0.107*	0.107*	0.103*	0.096*	0.119**
Industry_Agriculture	−0.025	−0.054	−0.053	−0.057	−0.051	−0.076	−0.061	−0.056	−0.066	−0.035	−0.034	−0.029	−0.035	−0.035	−0.041	−0.038	−0.035
Industry_Construction	−0.030	−0.041	−0.023	−0.043	−0.026	−0.060	−0.040	−0.042	−0.023	−0.020	−0.019	−0.014	−0.026	−0.030	−0.035	−0.028	−0.033
Industry_Manufacturing	−0.135**	−0.179***	−0.141**	−0.187***	−0.160**	−0.198***	−0.179***	−0.190***	−0.187***	−0.152**	−0.159**	−0.153**	−0.158**	−0.159**	−0.167***	−0.177***	−0.160**
Industry_Retail	−0.019	−0.044	−0.032	−0.025	−0.017	−0.031	−0.045	−0.012	−0.011	−0.002	−0.009	−0.003	−0.014	−0.017	−0.022	−0.021	−0.024
Industry_Wholesale	−0.007	−0.001	0.009	0.000	0.004	−0.003	0.005	−0.006	0.003	0.026	0.018	0.005	0.006	0.005	−0.002	0.008	0.008
Generation in control: 1st vs. 2nd+	0.030	0.067	0.069	0.066	0.081	0.085	0.068	0.039	0.077	0.057	0.055	0.066	0.061	0.060	0.063	0.062	0.062
R2	0.029	0.042	0.045	0.056	0.040	0.048	0.041	0.054	0.074	0.053	0.055	0.055	0.040	0.044	0.051	0.049	0.038
F statistic	1.470	1.560	1.787*	2.085**	1.479	1.672*	1.482	2.024**	2.833***	2.070**	2.152**	2.139**	1.533	1.659*	1.956**	1.888*	1.428
Observation	396	331	324	324	327	307	321	329	326	340	340	340	340	337	340	340	337

***p < 0.01.

**p < 0.05.

*p < 0.10.

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