Quantitative Finance and Economics | 2026
Authors: Chong Seow R.Y.
DOI: 10.3934/QFE.2026012
Journal: Quantitative Finance and Economics
Year: 2026
Publisher: American Institute of Mathematical Sciences
Document Type: Article
Open Access: All Open Access; Gold Open Access
Cited by: 0
The growing focus on corporate sustainability is prompting family firms worldwide to accelerate their adoption of environmental, social, and governance (ESG) practices. In this study, this study explores the influence of ESG performance on corporate financial performance (CFP) in family firms, focusing on how family control, ownership, leadership, and directorship moderate this relationship. Analyzing data from 72 Malaysian family firms between 2018 and 2022, this study extends the socioemotional wealth theory by illustrating how family-specific factors shape the ESG-CFP dynamic, utilizing a hierarchical linear modeling approach. The findings reveal a positive relationship between ESG and CFP, with family control, ownership, leadership, and directorship further enhancing this connection. These results reflect how family firms pursue their socio-emotional wealth objectives through governance mechanisms. This study adds to the literature by offering valuable insights into the sustainability practices of family firms in developing countries. © 2026 the Author(s)
Corporate financial performance; corporate sustainability; ESG performance; family control; family firms