Do the Board of Directors Composition and the Board Interlocking Influence on Performance?

Vesco, Delci Grapegia Dal; Beuren, Ilse Maria

doi:10.1590/1807-7692bar2016160007

Cited by 17 publications

(30 citation statements)

References 65 publications

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“…As a rule, even though previous studies supported the prevailing theories, they similarly display contradictory proof concerning the relationship between a portion of the board of directors' characteristics and the firm value. Open Access Library Journal In recent years, the studies on corporate governance have focused their attention on the analysis of the structure of the board [3] [7] [8] [9] [10] [11]. Yet, the empirical proof on the relationships among board structure and firm value is still uncertain.…”

Section: Introductionmentioning

confidence: 99%

Boards of Directors’ Characteristics and Firm Value: A Comparative Study between Egypt and USA

Salem¹,

Metawe²,

Youssef³

et al. 2019

OALib

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Purpose This research aims to compare the effect of board of directors' characteristics on the firm's value in Egypt as an emerging country and USA as a developed country. Five characteristics have been exposed from the literature review that may influence the enhancement of a firm's value. In corporate governance, these characteristics are CEO duality, board independence, board size, board meetings and gender diversity.

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Section: Introductionmentioning

confidence: 99%

Boards of Directors’ Characteristics and Firm Value: A Comparative Study between Egypt and USA

Salem¹,

Metawe²,

Youssef³

et al. 2019

OALib

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“…This key finding is consistent with the King IV report recommended practice (P7RP18) as well as Mans-Kemp et al (2016) where it was recommended that directors should limit their board memberships to give sufficient attention to the activities of all firms which they serve. A case study by Vesco and Beuren (2016) found that the characteristics of the governing board and the practice of board interlocking in Eskom proved to be insignificant with the market value. On the contrary, Habib (2016) found a positive correlation with ROA.…”

Section: H2: Board Interlocks Are Negatively Correlated With Profitabmentioning

confidence: 99%

Governing Board Attributes as Profitability Influencers under Endogeneity: An Econometric Analysis in South Africa

Sewpersadh

2019

JOFRP

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Presently, the oversight role performed by the governing board has been interrogated due to the demise of several corporate giants. The governing board is responsible for advancing the strategic direction of the company by ensuring superior performance whilst managing risks. Accordingly, this study investigated whether the governing board has any influence on a firm’s profitability by using OLS and GMM estimation on an unbalanced panel of 130 firms over a six-year period. ROA served as a proxy for firm performance and several board-level governance variables were selected namely board size, board independence, CEO duality, director qualifications, and board interlocks. From an econometric contribution, this study found that the addition of instrument variables in the GMM estimation model has proven to be robust in examining corporate governance variables. GMM is also robust in controlling endogeneity and a possible bi-directional causality between board and profitability. From a theoretical contribution, agency, resource dependence and management hegemony theories are highly prevalent in the governing boards of the JSE. The results of this study are as envisaged in the SCP paradigm. All hypotheses were supported, showing overall that profitability is significantly influenced by the board attributes. This study provides a useful analysis of the theoretical framework used by academic writers as a foundation for model specification as well as contributes to the econometric methodology of corporate governance. These findings will also advise future researchers, stakeholders and regulators in better understanding the role of board composition from a profit maximisation and sustainability outlook.

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“…O conselho de administração é um órgão que visa assumir a responsabilidade de tomar decisões em nome dos proprietários de uma organização (ANDRADE et al, 2009). Essa responsabilidade faz o conselho de administração se apresentar como um importante mecanismo para as funções de gestão e controle das organizações BEUREN, 2016). Dessa forma, o conselho se torna um instrumento de criação de valor para a companhia.…”

Section: Introductionunclassified

“…O conselho de administração atua nas organizações como um intermediador entre os acionistas e os administradores, de modo a exercer relevante papel na redução dos conflitos de agência BEUREN, 2016). Tal papel leva diversos autores a destacarem a necessidade de independência do conselho de administração, ou seja, a sua formação por membros externos à companhia, que não sejam acionistas ou componham o quadro de executivos da mesma (VALADARES; LEAL, 2000; ROSSONI; MACHADO-DA-SILVA, 2010; MOURA; BEUREN, 2011;TERJESEN;FRANCISCO, 2015).…”

Section: Introductionunclassified

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A Composição Do Conselho De Administração Na Determinação Do Capital Intelectual

Defaveri

Vesco

2021

RGO

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Este estudo teve como objetivo investigar a relação entre a construção de capital intelectual e a composição dos conselhos de administração, com enfoque, sobretudo, na constituição de interlocks entre empresas. Foram levantados dados da base Economatica© e do sítio eletrônico da B3, sendo o capital intelectual mensurado por meio do método VAIC. Foi utilizado o software estatístico Stata®, com aplicação da modelagem de Equações de Estimação Generalizadas (EEQ). Os resultados encontrados indicam que o tamanho do conselho de administração afeta positivamente a composição do capital intelectual. Já a independência do conselho mostrou relação negativa, quanto mais membros independentes houver no conselho, pior tende a ser o capital intelectual da companhia. A variável de interlock entre conselhos de administração não mostrou resultados estatisticamente válidos, de modo que não se pode afirmar que essa relação apresenta melhoras no capital intelectual. Desse modo, pôde-se evidenciar alguns dos elementos de composição dos conselhos de administração que afetam a composição do capital intelectual, de modo que as empresas possam utilizar tais resultados como referência na formação dos conselhos, de modo a buscar uma alocação de recursos mais eficiente para a construção de conhecimento nessas companhias.

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Do the Board of Directors Composition and the Board Interlocking Influence on Performance?

Cited by 17 publications

References 65 publications

Boards of Directors’ Characteristics and Firm Value: A Comparative Study between Egypt and USA

Boards of Directors’ Characteristics and Firm Value: A Comparative Study between Egypt and USA

Governing Board Attributes as Profitability Influencers under Endogeneity: An Econometric Analysis in South Africa

A Composição Do Conselho De Administração Na Determinação Do Capital Intelectual

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