LABOR TOPICS Nick Bloom “Bossonomics”: economics of CEOs and family firms. Family firms are extremely common, particularly in developing countries (1/2). Data from “Corporate ownership around the world” by La Porta, Lopez-de-Silanes and Shleifer, JF 1999.
Data from “Corporate ownership around the world” by La Porta, Lopez-de-Silanes and Shleifer, JF 1999.
Looks at 20 largest publicly quoted firms in each country – figures for medium and smaller firms much more extreme
share family CEO (2nd+ generation)
share founderCEO (1st generation)
share government owned
Ownership shares from Bloom and Van Reenen (2010, JEP)
Legal protection for investors is often weak for shareholders in developing countries – i.e. Indian legal system
As a result families rarely sell out and use external management, as is common in the US (i.e. Wal-Mart)
This is a still very under researched topic simply because of a lack of data, so papers focus on Denmark and the US.
Family-firm paper which uses clever identification (1/2)
Family-firm paper which uses clever identification (2/2)