Board Composition and Organization Issues

Tonello, Matteo

doi:10.1002/9781118258439.ch11

Cited by 7 publications

(5 citation statements)

References 13 publications

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“…On the one hand, according to legislation and requirements on information transparency, stock market listed companies may have smaller boards. This is supported by empirical evidence and as suggested by the agency theory (Yermack, 1996;Tonello, 2010). On the other hand, activities like exportation increases risks, thus companies need greater number of members in their board as suggested by the resource dependence theory in order to improve their counseling capacity and inter-organizational relationships across national borders (Schwaiger, 2004;Calabrò and Mussolino, 2011;Barroso et al, 2011).…”

Section: Introductionmentioning

confidence: 77%

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Trends on the relationship between board size and financial and reputational corporate performance

Orozco

Vargas

Galindo-Dorado

2018

EJMBE

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Purpose The purpose of this paper is to investigate the relationship between board size (B-SIZE) and financial and reputational corporate performance in top companies ranked by the Business Monitor of Corporate Reputation – MERCO in Colombia. Design/methodology/approach This paper conducts correlations and cluster analysis in order to classify firms based on performance and control variables, using a sectional sample of 84 large companies in Colombia over the period 2008-2012. Findings This research founds that large boards are associated with high performance on corporate reputation, as stated by the resource dependence theory, and a low-financial performance, as predicted by the agency theory. However, the results indicate that there is no relation between financial and reputational performance. Research limitations/implications This research considered only large companies listed by MERCO. Therefore, the results can only be generalized for top firms in Colombia according to this list. However, results add empirical evidence to theoretical debate between B-SIZE and firm performance considering financial and reputational indicators. Practical implications According to the OECD manual of good corporate governance practices, the optimal B-SIZE has between five to nine core members. The board structure has a direct impact over the firm’s financial and reputational performance and must be carefully analyzed by shareholders to balance the size according to expected results and firm’s features like family ownership, exportation activities and norms of stock markets. Originality/value This paper contributes to the existing literature on the relationship between B-SIZE and corporate performance with the evaluation of financial and reputational results for the case of an emerging economy. In Latin America, this analysis must go beyond OECD recommendations, and shall consider the context of an emerging country based on empirical evidence.

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Section: Introductionmentioning

confidence: 77%

“…Table I, 38 boards have seven members, which account for 45 percent of the companies in the sample. Likewise, 87 percent of the firm's boards have between five and nine members, while in the USA most companies have 9-12 board members (Tonello, 2010). It is worth noting that 18 out of 21 FBs of the sample presented in Table I have boards of 5-7.…”

Section: Methodsmentioning

confidence: 95%

Trends on the relationship between board size and financial and reputational corporate performance

Orozco

Vargas

Galindo-Dorado

2018

EJMBE

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“…This is an important objective to protect against social loss. Social losses that usually occur in this social fund assistance, the existence of social vulnerabilities that are borne by families, individuals or communities as a result of social inequality, political crises, economic crises, natural phenomena and several natural disasters which if there is no social assistance budget there will be life in unnatural conditions [7].…”

Section: Research Methodology 21 Social Fund Assistance For Poor Fami...mentioning

confidence: 99%

Implementation of the Simple Additive Weighting (SAW) Method in the Selection of Recipients of Social Funds for Poor Families

Vaneza¹,

Mesran²,

Afriany

et al. 2021

ijics

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Decision support system is the implementation of several decision-making theories by sciences such as operations research and management science. There are several differences, namely if in the past to find a solution to the problem at hand, iteration calculations had to be done manually or usually looked for the minimum, maximum, and optimum values, now Pc computers have offered the ability to solve the same problems in a relatively short time. In this study using the Simple Additive Weighting (SAW) method for collecting data on receipts of social assistance funds for poor families carried out by PT. Bank Negara Indonesia (Persero) Tbk. become more systematic and the right of recipients of social assistance funds is right for the people in need

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“…According to Paniagua, Rivelles and Sapena (2018), the board of directors and ownership structure have a direct impact on corporate performance. However, board composition depends on factors pertaining to the organizational and institutional environment (Tonello, 2010). Carter et al (2003) tested the hypothesis that firms benefit from greater board diversity and, more recently, Dezsö and Ross (2012) and Lazzaretti and Godoi (2012) concluded that behavioral traits traditionally attributed to women (communication, empathy, risk aversion, consensus seeking, democratic disposition) tend to improve board dynamics, benefiting the firm.…”

Section: Review Of the Literature And Development Of Hypothesismentioning

confidence: 99%

Corporate transparency and performance: what is the role of women in this relationship?

et al. 2022

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Purpose: In this study, we investigated the influence of female board membership on the relationship between corporate transparency and performance in Brazilian public firms. Methodology: The sample of this empirical-analytical study included 297 non-financial firms traded on B3 in the period 2015-2019. The data were analyzed with Student’s t test, the Mann-Whitney test and regressions on panel data. Results: Female board representation was small (6.9%). Student’s t test and the Mann-Whitney test showed that firms with female board members and transparency awards did not differ from other firms with regard to economic performance, but market performance was better. In the regression analysis, corporate transparency had no significant impact on performance and, despite the growing acknowledgment in society of the role of women in key corporate positions, the presence of women on the board did not change this association. Thus, our results indicate that the sampled firms did not derive measurable economic benefits from the presence of women on the board of directors. Contribution of the study: The study enriches the debate on female representation in key corporate positions in Brazilian public firms and helps understand the influence of female board membership on the relationship between corporate transparency and economic/market performance.

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Board Composition and Organization Issues

Cited by 7 publications

References 13 publications

Trends on the relationship between board size and financial and reputational corporate performance

Trends on the relationship between board size and financial and reputational corporate performance

Implementation of the Simple Additive Weighting (SAW) Method in the Selection of Recipients of Social Funds for Poor Families

Corporate transparency and performance: what is the role of women in this relationship?

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