Skin In The Game

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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