McConaughy, Daniel L <br/><br/>
Founders versus descendants 
the profitability, efficiency, growth characteristics and fi 
 -  1999 
 - 123 - 131 
<br/><br/> This study examines the differences between founder-controlled firms and firms controlled by descendants or relatives of the founder. In general, we observe that founder-controlled firms grow faster and invest more in capital assets and research and development. However, descendant-controlled firms are more profitable. The results are consistent with a life-cycle view of the family firm in which the early years are characterized by rapid growth. The experience of the early years provides a basis for later, when the firm is more professionally run and can exploit  its established position in the market.