What’s the difference in performance between a family business where the CEO hands off leadership to a member of the family versus an outside CEO? That’s one of the questions our latest podcast, “The Church of Scionology,” tries to answer. (You can download/subscribe at iTunes, get the RSS feed, or read the transcript here.)
Stanford economist Francisco Pérez-González has looked at the data to try to figure this out. (His paper “Inherited Control and Firm Performance” can be found here). He compiled data from 335 management transitions across a number of industries with concentrated ownership or founding family involvement. He compared 112 blood-related successions to 213 unrelated ones.