News from Cass Business School

Are family owned firms the best value for shareholders?

Professor Ajay Bhalla argues that family owned businesses are more successful in the long term.

In light of recent events concerning News Corp, the value of family run businesses has been the focus of much discussion.

In this week's Cass Talks Professor Ajay Bhalla, Professor of Global Innovation Management at Cass, argues that family owned businesses are more successful in the long term, pointing out that approximately two-thirds of S&P 500 businesses are family owned.

He discusses the difference between first, second and third generation ownership and how power is kept in the family through the distribution of Class A and Class B shares. 

In addition, he points to the difference between Western and Eastern family owned businesses and suggests that for family owned businesses to have increased value for all stakeholders, not just those in the family, the eastern model is preferable.

Listen, watch and download Cass Talks and browse previous interviews.

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