Reports by the Clarkson Centre at the University of Toronto have discovered that family-owned firms achieve more than others in terms of shares. The research was based in Canada and conducted by analyzing 15 years of performance data of Canadian firms in the Toronto Stock Exchange. The study reveals that firms like Rogers Communication Inc. averaged an annual growth rate of 7.7% as opposed to 6.1% from other firms. The researchers suggest that the family firms have a longer time horizon, so therefore their focus on long-term goals may be a factor for success. I would suggest another reason for their success is the organizational culture.

The culture is founded by the family and their values and beliefs define the organization. In a family-oriented culture, it is usually a positive environment where employees work efficiently in a team and motivated to perform well. Everyone in the family firm is unified to achieve a common objective. It is very effective to have a strong organization culture because the business can be sustained in the long run. Therefore, many investors have confidence in these family firms to be able to continue their success for the future.

Works Cited
Globe and Mail – http://www.theglobeandmail.com/report-on-business/small-business/sb-managing/succession-planning/investors-fair-better-in-the-fold—family-owned-firms-outperform-others-study/article12738084/
Image – http://cdn.business2community.com/wp-content/uploads/2012/12/Corporate-Communications-Success1-300×225.png