Evaluation of Family Firm Value and Its Spatial Evolution Towards Sustainable Development in China

Abstract

This study develops a four-dimensional value-assessment framework encompassing economic, innovation, social, and cultural dimensions to evaluate the multidimensional performance of family firms in China. Drawing on the entropy weighting method, we construct a composite value index for 251 A-share listed family firms from 2014 to 2023 and apply spatial statistical techniques—including Dagum Gini coefficients, Theil indices, and coefficients of variation—to examine temporal evolution and regional disparities. We further estimate explanatory panel models with firm and year fixed effects (Hausman test favoring FE) to identify the firm-level determinants of composite value. Leverage exhibits a significantly negative association with value, while firm size and innovation capacity are positively related; no significant moderating effect of technology-intensive industry is found. A robustness check using equal weights (0.25 for each dimension) yields an almost perfect correlation (0.9999) with the entropy-weighted index, confirming that the dominance of the innovation dimension in the weighting scheme does not materially affect the overall conclusions. The results highlight the importance of integrating multidimensional value perspectives into both academic research and policy design to promote balanced, inclusive, and sustainable development trajectories for family enterprises.