Spending less time with the family
Subtitle: the decline of family ownership in the UK
By: Julian Franks, Colin Mayer, Stefano Rossi.
Contributors: Mayer, C. P.; Rossi, Stefano, 1974-; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10628; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10628.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Family-owned business enterprises -- Great Britain.
Description: "Family ownership was rapidly diluted in the twentieth century in Britain.  The main cause was equity issued in the process of making acquisitions.  In the first half of the century, it occurred in the absence of minority investor protection and relied on directors of target firms protecting the interests of shareholders.  Families were able to retain control by occupying a disproportionate number of seats on the boards of firms.  However, in the absence of large stakes, the rise of hostile takeovers and institutional shareholders made it increasingly difficult for families to maintain control without challenge.  Potential targets attempted to protect themselves through dual class shares and strategic share blocks but these were dismantled in response to opposition by institutional shareholders and the London Stock Exchange.  The result was a regulated market in corporate control and a capital market that looked very different from its European counterparts.  Thus, while acquisitions facilitated the growth of family controlled firms in the first half of the century, they also diluted their ownership and ultimately their control in the second half"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.