Why Family CEOs Outperform Their Non-Family Predecessors

A summary of our article “Back to the Future: The Effect of Returning Family Successions on Firm Performance” forthcoming in Strategic Management Journal, has recently appeared in the magazine INSEAD Knowledge.

What happens when a family firm that has been led by a professional CEO subsequently moves to family leadership? We find that the appointment of a family CEO corresponds to an 18% advantage in profitability. Family leadership can enhance performance in companies that have already professionalized their governance, and thus have learned how to reconcile meritocracy with family‐based assets.


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