ESG Performance and Institutional Quality: Can Virtuous Institutional Leadership Lead to a More Sustainable Economic Environment? An Exploratory Study of the Most Capitalized European Family–Listed Companies
研究了欧洲大型上市家族企业中，国家制度质量与ESG表现的关系，发现政府效率、监管质量和法治水平越高，ESG表现反而越低，表明制度可能替代企业自愿的ESG投入。
ABSTRACT National institutions are widely assumed to foster corporate sustainability, yet their effects on ESG engagement can vary across contexts and firm types. Drawing on institutional theory and the socioemotional wealth (SEW) perspective, we examine how national institutional quality relates to ESG performance among large listed European family firms. Using ESG scores from Refinitiv and governance indicators from the Worldwide Governance Indicators, we find that higher government effectiveness, regulatory quality, and rule of law are associated with lower ESG performance, while voice and accountability, political stability, and control of corruption show no significant relationship. We interpret this pattern as a substitution mechanism: when institutions credibly enforce baseline standards and confer legitimacy, the marginal strategic value of additional voluntary ESG engagement declines—especially for family firms attentive to autonomy, control, and reputational preservation. The study contributes to institutional theory by specifying a boundary condition to institutional complementarity and to family business research by explaining how SEW‐consistent priorities shape the strategic meaning of ESG under different institutional configurations. From a policy perspective, the findings suggest that, alongside stringent reporting and compliance regimes, complementary incentive‐based instruments and targeted support may be needed to sustain proactive ESG strategies beyond compliance among European family firms.