Freakonomics Radio

The Church of "Scionology" (Rebroadcast)

Aug 8, 2013
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ANECDOTE

Yuengling's Revival

  • D.G. Yuengling & Son, America's oldest brewery, faced near bankruptcy in the mid-20th century.
  • Dick Yuengling, the current CEO, revived the company through slow, steady expansion.
INSIGHT

Profitability Drop

  • Family businesses often experience a 10-20% drop in profitability after the founder hands over control.
  • This insight comes from economist Antoinette Schoar's research on family firm performance.
INSIGHT

Stock Price Drop

  • The stock price of family firms drops 10-15% when a family member takes over as CEO.
  • This drop is primarily driven by CEOs who didn't attend selective colleges, suggesting a lack of ability or effort.
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