Controlled Companies in the Standard and Poor's 1500: A Follow-up Review of Performance and Risk

Author Edward Kamonjoh, March 2016, 90 pages, read in the study document. The proportion of controlled firms where board members average at least fifteen years of service is more than 17 percentage points higher than at non-controlled firms and almost 80 per cent of controlled firms have no new board nominees, roughly 10 percentage points higher than non-controlled companies. Performance is mixed rather than uniformly worse: controlled firms underperformed on total shareholder return, revenue growth, return on equity and dividend payout over one, three, five and ten years but outperformed on return on assets, and the study explicitly reverses the 2012 volatility finding, stating "No Consistent Difference in Stock Price Volatility Separates Controlled and Non-Controlled Companies"; the number of controlled firms in the S&P 1500 fell by approximately 8 per cent from 2012 to 2015.