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The family that stays in business together prosperstogether--and takes its investors along for the ride, or so says arecent study.
"Over the last 20- and 10-year periods, we have foundfamily-controlled firms that are publicly traded are an excellent[investment] value," says Robert Kleiman, associate professorof finance at Oakland University in Rochester, Michigan. Kleimanconducted the study with NetMarquee Online Services, an Internetmarketing firm.
Over a 20-year period, the value of stocks of the largestpublicly held family firms outpaced returns on the Standard &Poor 500 Index and the Nasdaq Composite by 16.4 percent to 14percent, Kleiman found. This has good implications for the economy,Kleiman says, because 60 percent to 75 percent of Americanbusinesses are family-owned, and they are responsible for abouthalf the nation's gross national product.
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