Does It Matter? Family Capitalism investors are deeply mistrustful of most companies and prefer to invest to persons of good reputation The most common system (Japan,Korea etc.) Entrusted to wealthiest few families provide investors with fewer legal rights Problems:governance can deteriorate if the families grows inept, conservative.So they tend to keep the status,keep shareholder rights weak so that the upstarts cannot compete for public investors'saving.• investors are deeply mistrustful of most companies and prefer to invest to persons of good reputation • The most common system (Japan, Korea etc.) • Entrusted to wealthiest few families • provide investors with fewer legal rights • Problems: governance can deteriorate if the families grows inept, conservative. So they tend to keep the status, keep shareholder rights weak so that the upstarts cannot compete for public investors’ saving. Family Capitalism Does It Matter?