La División Académica de Administración y Contaduría los invita al Seminario "Family ownership and legal requirements for minority stakeholders protection."

Por Luis J. SANZ, INCAE

Co-autor Pablo MARTIN DE HOLAN, Instituto de Empresa INCAE

Summary
Most firms are owned by families, and most of them operate in countries where legal protection of minority shareholders is weak. Some authors have suggested that family control may be precisely the consequence of the lack of investor protection. Yet, we know that agency problems among owners actually increase in family-ownership situations, so family control by itself may not be an efficient substitute for the legal protection of minority investors. We analyze the interaction between family dynamics and legal frameworks to predict under what circumstances the lack of legal protection is not an obstacle for the growth of the firm.