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ESG integration and financial outcomes in Mexican family firms: a pathway to sustainable growth

Edgar Rogelio Ramírez-Solís & Luis Arturo Bernal Ponce

European Business Review2026https://doi.org/10.1108/ebr-01-2025-0015article
AJG 2ABDC B
Weight
0.50

Abstract

Purpose This study aims to examine the impact of environmental, social and governance (ESG) practices on the financial performance of family-owned firms in Mexico. It investigates explicitly whether ESG integration leads to improved outcomes and how the unique governance structures of family firms moderate this relationship. Design/methodology/approach This study utilizes panel data from 128 Mexican listed companies between 2014 and 2022, employing a fixed-effects model to examine the relationship between ESG practices and financial performance, as measured by returns on equity (ROE), return on assets (ROA) and operating margin. Family ownership is analyzed as a moderating factor, and robustness checks include dynamic Generalized Method of Moments (GMM) models and winsorization to control for outliers. Findings The results show that family firms integrating ESG – particularly environmental initiatives – exhibit significantly higher ROE and operating margins than nonfamily firms. However, the effect on ROA is selective, appearing only in robustness and subsample analyses. ESG adoption within family firms offers partial performance benefits, primarily through environmental and governance practices, which align with their long-term orientation and socioemotional wealth priorities. Originality/value This paper contributes to the literature by offering empirical evidence from an emerging economy, highlighting the nuanced impact of ESG integration on family firms. It advances socioemotional wealth theory in the context of corporate governance and sustainability, offering practical insights for investors, policymakers and family business leaders.

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https://doi.org/https://doi.org/10.1108/ebr-01-2025-0015

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@article{edgar2026,
  title        = {{ESG integration and financial outcomes in Mexican family firms: a pathway to sustainable growth}},
  author       = {Edgar Rogelio Ramírez-Solís & Luis Arturo Bernal Ponce},
  journal      = {European Business Review},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/ebr-01-2025-0015},
}

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F · citation impact0.50 × 0.4 = 0.20
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