Family Business Survival and the Role of Boards

21 Pages Posted: 7 Nov 2013

See all articles by Nick Wilson

Nick Wilson

University of Leeds - Credit Management Research Centre; Leeds University Business School

Mike Wright

Imperial College London

Louise Scholes

Loughborough University London

Date Written: November 2013

Abstract

We explore the vexing question of whether family firms are more likely to survive than nonfamily firms, focusing on the role of board composition. Utilizing a unique data set of over 700,000 private family and nonfamily firms in the U.K. during 2007–2010, we find that family firms are significantly less likely to fail than nonfamily firms. We identify the board characteristics associated with survival/failure in all firms and determine that it is these characteristics that are important in explaining the lower failure probability of family firms. We conclude with an agenda for further research on boards and family firm survival.

Suggested Citation

Wilson, Nicholas and Wright, Mike and Scholes, Louise, Family Business Survival and the Role of Boards (November 2013). Family Business Special Issue, Vol. 37, Issue 6, pp. 1369-1389, 2013, Available at SSRN: https://ssrn.com/abstract=2351019 or http://dx.doi.org/10.1111/etap.12071

Nicholas Wilson

University of Leeds - Credit Management Research Centre ( email )

Leeds LS2 9JT
United Kingdom
+44 (0)113 343 4472 (Phone)

Leeds University Business School ( email )

Leeds LS2 9JT
United Kingdom
+44 (0)113 343 4472 (Phone)

Mike Wright

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

Louise Scholes

Loughborough University London ( email )

Here East
Queen Elizabeth Olympic Park
London, E15 2GZ
Great Britain

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