Governance is the key to increased professionalism and proper management of the family firm. Financial performance under the founder of a family firm is usually quite good. Miller and Le Bretton-Miller (2005, 2006) show numerous instances of family firms financially outperforming nonfamily firms. Data show the second and third generation family CEOs have not enjoyed a similar amount of financial outperformance as their family predecessors (Miller, Le Breton-Miller, and Lester 2011). This shows the increased need for proper governance in the second, third, and future generations. If the second and third generations do not institute effective governance structures and professional management and instead continue to try and run the firm ...

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