Spreadsheets and Long Term Corporate Survival

TL;DR

This study empirically demonstrates that UK companies using spreadsheets and decision analysis tools have significantly higher long-term survival rates than those that do not, highlighting the potential strategic benefits of such software.

Contribution

It provides the first empirical evidence linking spreadsheet usage and decision analysis tools to increased corporate survival.

Findings

Companies using spreadsheets have higher survival rates.

Spreadsheet-based decision tools correlate with long-term success.

Statistical significance confirmed in survival differences.

Abstract

We have conducted an empirical investigation into the long term survival rates of some small but representative samples of the 30,000 largest UK limited companies. These companies were either a control or known to have used, or been interested in the use of, spreadsheets, spreadsheet based monte carlo simulation software, other spreadsheet and decision analysis software and/or related management training. We show that there is a material and statistically significant increase in the long term survival rate of all of these groups of companies compared to the control.