The Scientist, October 1st, 2006
Conventional wisdom holds that founders of companies make poor managers. Now a new study of 2,327 large US public corporations finds that retaining the founders may significantly benefit the company's bottom Une. An imaginary stock portfolio of the 361 founder-led firms in the study - which included Boston Scientific, Incyte Genomics, and other life sciences companies - would have outperformed the remaining firms by nearly 11% in share price performance during 1993-2002, according to study author Rudiger Fahlenbrach of Ohio State University in Columbus. Even after other factors such as size, a...
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