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Family Business Survival and the Role of Boards

Author

Listed:
  • Nick Wilson

    (Leeds University Business School)

  • Mike Wright

    (Imperial College Business School)

  • Louise Scholes

    (Durham University Business School)

Abstract

We explore the vexed question of whether family firms are more likely to survive than non-family firms, focusing on the role of board composition. Utilizing a unique dataset of over 700,000 private family and non-family firms in the UK during 2007-10, we find family firms are significantly less likely to fail than non-family 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

  • Nick Wilson & Mike Wright & Louise Scholes, 2013. "Family Business Survival and the Role of Boards," Research Papers 0001, Enterprise Research Centre.
    • Handle: RePEc:enr:rpaper:0001
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    References listed on IDEAS

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    More about this item

    Keywords

    family business; governance; bankruptcy; board composition;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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