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Companies Led by Their Founders Are Winners on the Stock Market.
AScribe Business & Economics News Service, August, 2006
Byline: Ohio State University
COLUMBUS, Ohio, Aug. 7 (AScribe Newswire) -- Companies that are still run by the men and women who started them tend to perform better in the stock market than do other firms, a new study suggests.
Firms with founder-CEOs outperformed other companies in the stock market by 8.3 percent from 1993 to 2002, said Rudiger Fahlenbrach, author of the study and assistant professor of finance at Ohio State University's Fisher College of Business.
"Entrepreneurs who started a company and developed it through years of hard work often consider that their life's achievement," Fahlenbrach said.
"They approach their company differently than any successor could, and that is reflected in how the company is valued."...
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