Work

Family Business Survival and the Role of Boards

Year: 2013

Type: article

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.

Source: Entrepreneurship Theory and Practice

DOI: 10.1111/etap.12071

Authors: Nick Wilson, Mike Wright, Louise Scholes

Institutions: University of Leeds, Ghent University, Imperial College London, Durham University

Language: English

Topic: Family Business Performance and Succession

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funder: Economic and Social Research Council

Award: G7706841186