Second Generation not as Successful in Family Businesses

This study from Wharton reports on the challenge of intergenerational succession in family businesses.
“Despite the lack of independent directors on their boards and voting power for minority shareholders, family-run companies are still the better bet for all stakeholders as long as the founder of the firm is involved as chief executive officer or chairman. If the descendent of a founder runs the company, value is lost.”
Other studies show that third generation transfers are even more tenuous.