outstanding shares, while a t Nordstrom's, the family has retained 24 percent of the shares to maintain control. To address this uncertainty, we create a dummy variable that equals one when founding families hold shares i n the firm or when founding family members a r e present on the board of directors.14Tobin's q and return on assets (ROA) are our primary performance measures. We estimate Tobin's q (q) as the market value of total assets divided by the repla-cement cost of assets. We estimate market values and replacement costs using Yermack's (1996) algorithm. ROA is computed in two ways. I n one approach, we use net income scaled by the book value of total assets. I n the second approach, we use earnings before interest, tax, depreciation, and amortization (EBITDA) divided by the book value of total assets.