Nick Wilson is Professor of Finance at Credit Management Research Center, Leeds University Business School, University of Leeds, Leeds, UK.
Family Business Survival and the Role of Boards
Article first published online: 30 SEP 2013
© 2013 Baylor University
Entrepreneurship Theory and Practice
Family Business Special Issue
Volume 37, Issue 6, pages 1369–1389, November 2013
How to Cite
Wilson, N., Wright, M. and Scholes, L. (2013), Family Business Survival and the Role of Boards. Entrepreneurship Theory and Practice, 37: 1369–1389. doi: 10.1111/etap.12071
Thanks to participants at the Theories of Family Firms conference in Edmonton, May 2012, for comments on an earlier draft and to Danny Miller, Isabelle Le Breton-Miller, Eric Gedajlovic, the guest editors, and two anonymous reviewers for very helpful comments.
- Issue published online: 6 NOV 2013
- Article first published online: 30 SEP 2013
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.