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The Role of Family in Family Firms

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Author Info
Marianne Bertrand
Antoinette Schoar
Abstract

History is replete with examples of spectacular ascents of family businesses. Yet there are also numerous accounts of family businesses brought down by bitter feuds among family members, disappointed expectations between generations, and tragic sagas of later generations unable to manage their wealth. A large fraction of businesses throughout the world are organized around families. Why are family firms so prevalent? What are the implications of family control for the governance, financing and overall performance of these businesses?

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Publisher Info
Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 20 (2006)
Issue (Month): 2 (Spring)
Pages: 73-96
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Handle: RePEc:aea:jecper:v:20:y:2006:i:2:p:73-96

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