Mini Case Study - Family Ownership - 2011

Mini Case Study - Family Ownership - 2011 - Cronyism,...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
1 “Mini” Case Study All in the Family
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Family Ownership Even in U.S., families own & control a significant number of publicly-traded firms Family ownership (founders and descendents) is present in 35% of firms in S&P 500, where families hold 18% of shares Outside of U.S., estimated that families control over 53% of publicly-traded firms Numbers likely higher for privately-held firms
Background image of page 2
3 Good or Bad? Family ownership is good! Family members know the firm well, Trust and loyalty more easily extended to them, Stronger incentives for success (family name at stake) Family ownership is bad!
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
Background image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Cronyism, Likely outsiders with better expertise, Reversion to the mean 4 What determines succession? NYU professors look at sample of limited liability firms in Denmark, have family characteristics of CEO! Relate family characteristics such as # of kids, % of males, whether male first born, and number of spouses to whether a family member succeeds as CEO What do they find? 5 How about performance? How is operating performance of firms affected by within-family succession of CEO? How would you test for this? What do they find?...
View Full Document

This note was uploaded on 01/02/2012 for the course FINANCE 347 taught by Professor Bayou during the Fall '11 term at NYU.

Page1 / 5

Mini Case Study - Family Ownership - 2011 - Cronyism,...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online