Significant Family Influence

In finance, the term “significant family influence” refers to a situation in which one family holds a significant portion of a company's shares and therefore wields significant influence over the company.

Businesses with significant family influence are typically formed when a family-owned business becomes a public company. In this case, the family which previously owned the business may choose to retain a portion of the company’s shares in order to maintain significant influence or even controlling influence over the company.

On average, stocks with significant family influence (SSFI) often perform better over the long term than other stocks. The Credit Suisse Family Index (CSFAM) tracks the performance of 40 key SSFIs.

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