Foundations under the microscope

Every five kroner in Denmark is realised by a foundation. A new CBS research project will obtain more knowledge about the secretive foundations.

12/19/2011

Foundation-owned companies in Denmark employ 300,000 people and have a revenue of DKK 600 billion, which is approximately one out of five realised kroner in the business community. No other country has such a large amount of foundation-owned companies - companies that follow other rules than normal businesses.

CBS is therefore launching a research project managed by Steen Thomsen, Professor from the Center for Corporate Covernance. A project that will provide the public with more knowledge about the influential foundations.

- It is essential that we obtain more knowledge about how the foundation-owned companies are led and how they manage financially. We really don't know very much about them, says Steen Thomsen.

Foundations have higher yields

In the past weeks, debates in the media have been centred on these foundations and their lack of transparency and bad management. According to Steen Thomsen, research will help separating myths from reality.

The project launch on Monday 19 December includes a presentation of new figures, which show that the foundations had a better profitability than the listed companies in Denmark and the other Nordic countries from 2003 to 2008. Their yield was 7.6 % of the equity compared to 5.7 % for the listed companies. Foundations with a good management and a solid capital base who focus on innovation are by far the best performers.

iels Due Jensen from Grundfos (Poul Due Jensens fond) and Niels Jacobsen from William Demant Holding (owner of the hearing aid manufacturer Oticon) will join the launch and speak about what it means to their companies to be owned by a foundation.

The page was last edited by: Communications // 12/19/2011