Study says Canadian family operated businesses outperform TSX index
The National Bank of Canada study considers the performance of 43 prominent family-controlled businesses
TORONTO – A study from the National Bank of Canada says the country’s 43 most prominent family-controlled businesses outperformed the S&P TSX composite index.
The bank’s analysis of companies including Bombardier Inc., Loblaw Companies Ltd., Rogers Communications Inc. and Shopify Inc. says the businesses have achieved an absolute return rate of 206 per cent over the last 13 years.
That rate is higher than the 133 per cent S&P TSX composite total return over the same period between June 2005 and June 2018.
The study also says returns for the family-run companies were about nine per cent on an annualized basis, compared to 6.7 per cent for the S&P TSX composite total return index.
The bank’s conclusions are based on an analysis of companies where a founding family or founder controls 10 per cent or more voting rights or an individual and related entities with ownership controls 33.3 per cent or more of voting rights.