New research suggests publicly listed family-run businesses perform better than companies under the control of a hired executive team, the ABC reports.
The RMIT University study indicates family businesses outperform non-family enterprises in the areas of market capitalisation, return on assets and compound returns.
Long-term management direction, strong connections between management and shareholder interests, and a focus on core activities are identified as reasons behind family company success.
Harvey Norman founder Gerry Harvey concurs with the study's findings. Pointing out that the average stay of a hired CEO is usually between three and five years, Harvey says his business has prospered because of his family's long term view.
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