Board of directors structure and firm financial performance: A qualitative comparative analysis

García‐Ramos, Rebeca; Dı́az, Belén Dı́az

doi:10.1016/j.lrp.2020.102017

Cited by 51 publications

(29 citation statements)

References 81 publications

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“…In the main, complexity theory argues that no single factor sufficiently indicates a high score in a certain outcome, whereas a few of many available complex combinations of factors can be essential drivers of high scores for a certain outcome (Wu et al, 2014). Relying on complexity theory, García‐Ramos and Díaz (2020) stated that the board of directors must be considered as a whole, since decisions taken by the board do not depend upon individual characteristics (i.e., size, independence, and diversity), but instead upon different combinations of these characteristics. With regard to the association between board and CSR performance, complexity theory suggests that numerous combinations of board attributes, such as size, independence, and diversity can be more relevant to CSR performance than the individual attributes (Cuadrado‐Ballesteros et al, 2017), while there is more than one optimal combination of attributes to achieve a higher level of CSR (Dwekat et al, 2020).…”

Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

Board structure, financial performance, corporate social responsibility performance, CSR committee, and CEO duality: Disentangling the connection in healthcare

Uyar

Kuzey

Kılıç

et al. 2021

Corp Soc Responsibility Env

127

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Despite the growing importance of responsible behavior in the healthcare sector, research on corporate social responsibility (CSR) in association with board structure is scarce. Hence, the objective of this study is twofold: (1) to test whether a board structure is associated with firm financial and CSR performance and (2) whether the CSR committee and CEO duality moderates this association in the healthcare sector.Examining the moderation of CSR committee is important to understand whether CSR committee strengthens or weakens the link between female directors and CSR performance. Moreover, CEO duality's moderation will highlight whether powerful CEOs are a barrier for female directors' monitoring role. The data for the study was derived from the Thomson Reuters Eikon database for the years between 2011-2018. Overall, the results suggest that while female directors contribute to firm performance, CEOs with dual roles and larger boards harm firm performance. Further, independent directors have a limited contribution to CSR performance whereas they have no contribution to financial performance. Moderation analysis shows that CSR committees and female directors are not the replacement of one another; they are both needed and beneficial to the corporate structure. Although CEOs with a dual role impair the performance of a firm, they do not exert considerable influence on the other directors. As one of the important functions of a board is monitoring, these findings assist healthcare firms to configure their boards to improve their monitoring functions. The results are therefore helpful in terms of alleviating agency costs and in appeasing stakeholders.

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Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

Board structure, financial performance, corporate social responsibility performance, CSR committee, and CEO duality: Disentangling the connection in healthcare

Uyar

Kuzey

Kılıç

et al. 2021

Corp Soc Responsibility Env

127

View full text Add to dashboard Cite

show abstract

“…Corporate boards play a progressive role toward organizational prosperity (Aggarwal et al, 2019;Garcı ´a-ramos and Dı ´az, 2020). An active board can make multifaceted decisions, i.e.…”

Section: Theoretical Underpinningsmentioning

confidence: 99%

“…The extant research explains how firm performance is influenced by different board attributes, e.g. board size, board independence, duality and board ownership (García-ramos and Díaz, 2020). However, these attributes are primarily structural in nature and do not profoundly capture the board’s performance ability.…”

Section: Introductionmentioning

confidence: 99%

Does board capital increase firm performance in the Chinese tourism industry?

Yousaf

Ullah

Wang

et al. 2021

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Purpose This study aims to examine the relationship between board capital and firm performance in the Chinese tourism industry. Design/methodology/approach The study’s sample includes firms from the Chinese hotel, air transportation/travel and catering industries. This study explores the governance environment in tourism industries. This study estimates three dimensions of the board, including education, expertise and directors interlock. These dimensions are further grouped as human capital (i.e. education and expertise), social capital (interlocks) and board capital (sum of social and human capital). Ordinary least square regressions with multiple robustness tests are used to investigate the effect of board capital on firm value in Chinese listed tourism firms during 2005–2018. Findings This study finds that board capital positively impacts firm performance in its dimensions of human and social capital. This study also highlights the two important ownership contexts, namely, institutional investors and state-ownership, that shape the board capital-firm performance association in the Chinese tourism industry. Practical implications The findings suggest that board capital plays a significant role in corporate decisions. The results illustrate that higher board capital improves both governance mechanisms and resource provision roles of the board, resulting in higher firm value. The results further offer implications for managers and shareholders of tourism firms when electing directors as shareholders’ representatives. Originality/value The study has two important contributions. First, it extends the prior literature of firm value by considering the board’s human and social dimensions in the tourism sector. Second, contrary to prior research on board, this study takes three facets of board capital, education, expertise and interlocks that improve governance mechanisms and bring new resources in the shape of skills, knowledge and expertise.

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“…Through the analysis of the literature, it has been found that several studies have emphasized financial performance based on company size, operating efficiency, solvency, asset profitability, return on investment and the profitability of the company’s resources (Pokharel et al , 2020) among other characteristics (García-Ramos and Díaz, 2020). Therefore, the management of microenterprises must be able to manage their tangible and intangible resources through a strategic plan that guarantees their continuous competitiveness in a globalized market (Donkor et al , 2018).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Strategic planning key factor in tangible–intangible results in microenterprises

López-Lemus

Carranza

Ibarra

et al. 2021

MRJIAM

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Purpose The objective of this research is to know the degree of influence that strategic planning (SP) exerts on the tangible and intangible results of business microenterprises in the state of Guanajuato, Mexico. Design/methodology/approach The methodological design was quantitative, explanatory, observational and cross-sectional, where a sample of 407 young leaders of microenterprises from the state of Guanajuato, Mexico, was obtained. To evaluate hypotheses, a structural equation model (SEM) was developed. Regarding the goodness and adjustment indices of the SEM, they were absolutely acceptable. Findings The results obtained through Pearson’s correlation show that there is a positive and significant relationship between SP and the tangible and intangible results of microenterprises. In addition, through the results obtained with the SEM model, it is statistically demonstrated that SP positively and significantly influences the tangible and intangible results of microenterprises in the state of Guanajuato, Mexico. Research limitations/implications In this research, only SP was valued as a variable that intervenes in the process of achieving tangible and intangible results to achieve the business objectives of entrepreneurial microenterprises in the state of Guanajuato. It is essential to point out that other variables that intervene in the process must be considered to generate tangible and intangible results. It is recommended to carry out further research under these variables to identify strategies for improving entrepreneurial microenterprises for their growth, sustainability and rapid positioning in a highly competitive market. Practical implications SP represents one of the tools to achieve the success of microenterprises through tangible and intangible results. However, microenterprises show a need to involve the use and application of SP to define clear indicators that contribute to obtaining satisfactory tangible and intangible results. Originality/value The findings are relevant and of great value, because there is currently not enough research that focuses on the variables analyzed, in this sense, SP and the tangible and intangible results of young entrepreneurial leaders of microenterprises in the Mexican context. The limitations of this study lie in the low participation and interest of young microenterprise entrepreneurs in the state of Guanajuato, Mexico.

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Board of directors structure and firm financial performance: A qualitative comparative analysis

Cited by 51 publications

References 81 publications

Board structure, financial performance, corporate social responsibility performance, CSR committee, and CEO duality: Disentangling the connection in healthcare

Board structure, financial performance, corporate social responsibility performance, CSR committee, and CEO duality: Disentangling the connection in healthcare

Does board capital increase firm performance in the Chinese tourism industry?

Strategic planning key factor in tangible–intangible results in microenterprises

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