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Very few investors are likely to be found queuing up to venture into a centuries-old family firm.After all, in most competitive economies, family control is unsustainable without any private benefits.Against all odds, Japanese family firms are flourishing – and that is because family empires have been cheating fate by refusing to play the cards they have been dealt.Branching out Every year, 80,000 adoptions take place across Japan.Generally speaking, family heirs only partially inherit intelligence and business knowledge, while the burden of title birthright appears to do little more than deaden would-be talent and chase away ambitious managers.With those inherent disadvantages in mind, it’s little wonder family-run firms are a dying breed in most developed economies. Not only are a third of Japanese corporations still family-run, but those family firms are outperforming professionally managed companies in virtually every way.In Japan, 98% of adoptions are actually adult men, aged between 20-30 years old — not children.That is according to government data cited by economist Steven Levitt and journalist Stephen J.

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The practice has been covered for decades in academic papers as well, such as "Sons and Lovers: Adoption in Japan" by Taimie L.Yet, oddly enough, some 98 percent of the individuals adopted are highly intelligent men in their 20s and 30s.An age-old relic of Japanese primogeniture, the tradition of electing a mukoyoshi (or ‘adopted son-in-law’) sees highly-placed, business-owning families legally adopting a well-educated young man into the clan with a view to him inheriting the business later in life.Many family firms – car-maker Suzuki, Matsui Securities, and giant brewery Suntory – break the rule of steady dynastic decline, or what is sometimes cruelly dubbed the "idiot-son syndrome". Remarkably, more than 90 per cent of those adopted were adults.The practice of adopting men in their 20s and 30s is used to rescue biologically ill-fated families and ensure a business heir, says Vikas Mehrotra, of the University of Alberta, the lead author of a new paper on the Japanese phenomenon of adult adoptions.




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