• DOI:10.1093/RFS/HHN080
Corpus ID: 1897723

How Are U.S. Family Firms Controlled

@article{Villalonga2009HowAU,
  title={How Are U.S. Family Firms Controlled},
  author={B. Villalonga and R. Amit},
  journal={Review of Financial Studies},
  year={2009},
  volume={22},
  pages={3047-3091}
}

B. Villalonga, R. Amit

Published 2009

Economics

Review of Financial Studies

In large U.S. corporations, founding families are the only blockholders whose control rights on average exceed their cash-flow rights. We analyze how they achieve this wedge, and at what cost. Indirect ownership through trusts, foundations, limited partnerships, and other corporations is prevalent but rarely creates a wedge (a pyramid). The primary sources of the wedge are dual-class stock, disproportionate board representation, and voting agreements. Each control-enhancing mechanism has a… CONTINUE READING

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