ZEE BUSINESS BEST B SCHOOL SURVEY
Don’t worry pop, I’ll make sure I blow it all up!
Perhaps the most dramatic paper that electrifyingly shook age-old perceptions was the one presented in 2004 by stalwart professors Belen Villalonga (Harvard Business School) and Raphael Amit (Wharton), who analysed “all” Fortune 500 firms and proved unequivocally that not only do the stock returns of family firms consistently show higher levels of risk, but also that “when ‘descendants’ (of founders or founding families) serve as CEOs, firm value ‘is’ destroyed!” If one presumed that modern corporate governance norms were enough to mitigate the damage caused by family successors, Villalonga and Raphael prove further that descendant CEOs “destroy value whether or not the family has control-enhancing mechanisms.” While the most noted 2003 research by London Business School proffered that family businesses “risk their growth potential if they fail to recruit from outside,” most amusing was the Economist research at the turn of the century that commented how the death of a significant inside shareholder resulted in a shareholders’ wealth increase (“the larger the deceased’s shareholding, the bigger the subsequent rise!”). Strangely, this finding gets humungous support from the subsequent benchmark 2005 research paper titled ‘Firm Performance...In Family Managed Firms’ by David Hillier (Leeds) and Patrick McColgan (Aberdeen), which documents positive stock price increases to the “announcement of the sudden death of a company’s founder executive.” But more seriously, they also indisputably brought out how family CEO successions are almost always followed by dramatic declines in not only stock performance, but dangerously, even operating results!
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
IIPM Ranked No. 1 B-School In Global Exposre - Zee...
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMsIIPM makes business education truly global-Education-The Times of ...
Don’t worry pop, I’ll make sure I blow it all up!
Perhaps the most dramatic paper that electrifyingly shook age-old perceptions was the one presented in 2004 by stalwart professors Belen Villalonga (Harvard Business School) and Raphael Amit (Wharton), who analysed “all” Fortune 500 firms and proved unequivocally that not only do the stock returns of family firms consistently show higher levels of risk, but also that “when ‘descendants’ (of founders or founding families) serve as CEOs, firm value ‘is’ destroyed!” If one presumed that modern corporate governance norms were enough to mitigate the damage caused by family successors, Villalonga and Raphael prove further that descendant CEOs “destroy value whether or not the family has control-enhancing mechanisms.” While the most noted 2003 research by London Business School proffered that family businesses “risk their growth potential if they fail to recruit from outside,” most amusing was the Economist research at the turn of the century that commented how the death of a significant inside shareholder resulted in a shareholders’ wealth increase (“the larger the deceased’s shareholding, the bigger the subsequent rise!”). Strangely, this finding gets humungous support from the subsequent benchmark 2005 research paper titled ‘Firm Performance...In Family Managed Firms’ by David Hillier (Leeds) and Patrick McColgan (Aberdeen), which documents positive stock price increases to the “announcement of the sudden death of a company’s founder executive.” But more seriously, they also indisputably brought out how family CEO successions are almost always followed by dramatic declines in not only stock performance, but dangerously, even operating results!
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
IIPM Ranked No. 1 B-School In Global Exposre - Zee...
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMsIIPM makes business education truly global-Education-The Times of ...
