Why Premjis, Ambanis and Nadars beat non-family run companies

Family-owned businesses outdo peers in returns since 2006, suggests a Credit Suisse report

The return generated by family-owned businesses have been higher than the non-family owned ones since 2006, finds a study from Credit Suisse. Using its proprietary ‘Family 1000’ database of over 1,000 publicly listed family or founder-owned companies, the Credit Suisse analysis suggests that since 2006, the overall ‘Family 1000’ universe has outperformed non-family-owned companies by an annual average of 370 basis points (bps).

The research house classifies a family-owned company where either the founder / family owns at least 20 per cent of the company’s share capital or where the founder / family controls at least 20 per cent of