There is empirical evidence in all parts of the world showing better returns in family-owned companies compared to counterparts
The research by Credit Suisse concludes that listed family-owned businesses outperform due to these factors:
- Faster growth.
- Higher margins.
- Conservative balance sheets, better durability.
- Better cash flow returns.
But why and how do they perform better? The report from Credit Suisse and others I have gathered, mention some possible explanations:
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