Faculty News

Professor Belén Villalonga's joint research on acquisitions and divestitures involving family firms is featured

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Exceprt from the Harvard Law blog -- "Investors often ascribe higher valuations to family firms than to non-family firms, especially when founders serve as CEOs, in part due to expectations that owner-manager agency conflicts will be mitigated by the involvement of founding families with strong incentives to monitor. These favorable expectations about family firms extend to those companies’ corporate strategies, in that family firm acquisitions and divestitures have been shown to generate higher shareholder returns than non-family firm acquisitions and divestitures."

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