In today’s briefing:
- Reason Behind the Difference in Management Between Family Companies and Others Is the Shareholding
Reason Behind the Difference in Management Between Family Companies and Others Is the Shareholding
- Correlation analysis of the major shareholder factor with ROE, ROA, and Tobin’s Q shows that founding family companies tend to have relatively high profitability (ROA) and high stock price valuations.
- On board practices, companies with more than 50% ownership are generally less concerned about improving their practices, because they don’t have to worry as much about voices of minority shareholders.
- With regard to key actions, companies with shareholders holding more than 50% interest are presumed to be proactive in growth investments.
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