What if Wall Street Loves the Story of the Family Firm?

Economists Antvenachua and Vikas Marotra analyze data on family firms. They find that when a publicly traded firm hands over the reins to the air, there is a drop in stock price by around 10 to 15 percent. But if your shares trade publicly, you make up for it in share price. The effect can be explained by a handful of family CEOs who just aren't very good or very smart or very motivated.