Public family controlled firms are always a grey area for investors. In many cases, the minority shareholders have little control over management’s decisions.
However, there is evidence to suggest that a controlling family can be a good thing, after all, their fortunes are tied to the success of the company. On the other hand, there have recently been a number of high-profile family-owned corporate collapses and management control concerns have led minority investors to question whether the returns warrant the risk.
To try and answer this question Credit Suisse has constructed the Credit Suisse Global Family universe of more than 900 companies with a market cap over $1bn to analyze the family business model.
Family outperformance
The key takeaway from Credit Suisse’s report is...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
