Credit Suisse: Are Family Firms Worth The Risk?

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…