PRO- large, undiversified family stake- incentives to ensure survival, long-term profits and long-term relations with stakeholders- associated with lower cost of debt- less pressure from stock market and longer investment horizon increases investment efficiency- knowledge passed on within not outside- alleviation of financial constraints

CON- likelihood of expropriation of minorty shareholders- combination MGMT and control -> possibly sub-optimal investment decisions, insufficient risk taking- lowers probability of external monitoring- family members in board and CEO etc.- founder remaining active even though no longer competent- restricted labor pool for exec positions