Size and independence of the board of directors and its relationship with economic performance: an analysis for family and non-family businesses
The purpose of this research paper is to determine the effect of the size and independence of the board of directors on economic performance of family and non-family businesses in Colombia. The relationship was analyzed using regression models in a balanced panel data based on three aspects (size an...
- Autores:
-
Lagos Cortés, Diógenes
Soto Echeverry, Nidia Costanza
Betancourt Ramírez, José Bernardo
Enríquez Yagüe, Julián Oswaldo
Gómez Betancourt, Gonzalo
- Tipo de recurso:
- Fecha de publicación:
- 2017
- Institución:
- Universidad EAFIT
- Repositorio:
- Repositorio EAFIT
- Idioma:
- spa
- OAI Identifier:
- oai:repository.eafit.edu.co:10784/13092
- Acceso en línea:
- http://hdl.handle.net/10784/13092
- Palabra clave:
- G30
G34
Corporate governance
Family business
Size of the board
Independence
Economic performance
Gobierno corporativo
Empresa familiar
Tamaño de junta
Independencia
Desempeño financiero
- Rights
- License
- Copyright (c) 2017 AD-minister
Summary: | The purpose of this research paper is to determine the effect of the size and independence of the board of directors on economic performance of family and non-family businesses in Colombia. The relationship was analyzed using regression models in a balanced panel data based on three aspects (size and independence of the board of directors and family nature of the company). The sample comprised 2,170 observations (310 businesses a year) between 2008 and 2014. It was found that: (i) the size of the board of directors has a negative influence on the ROA, ROE in the family companies; (ii) there is a positive influence from the independent members of the board of directors in the operatingincome (OI) for both family and non-family businesses; and (iii) the family nature shows a positive influence in the ROA indicator; however, the relationship is negative when they are first-generation family businesses. On the basis of the empirical findings, it is suggested that the control entities promote campaigns to disseminate the impact of the board of directors and the adequate role of independent members on the companies’ performance, and entrepreneurs are welcomed to implement good corporate governance practices. |
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