Advanced Search
MyIDEAS: Login

The Board Structure And Firm Performance In Smes: Evidence From Spain / La Estructura Del Consejo Y La Rentabilidad Empresarial En Las Pymes: Evidencia Desde España

Contents:

Author Info

  • Arosa, Blanca

    ()
    (Universidad de Oviedo (España))

  • Iturralde, Txomin

    ()
    (Universidad de Oviedo (España))

  • Maseda, Amaia

    ()
    (Universidad de Oviedo (España))

Registered author(s):

    Abstract

    The aim is to analyse the efficiency of the board of directors as a corporate governance mechanism. For this purpose, we examine the effect of board composition, size, activity, leadership structure and CEO tenure on firm performance. To test our hypothesis we use a sample of 307 Spanish SMEs, none of which is listed. Our main empirical result is the negative impact of the outside directors proportion and board size on firm performance. The presence of outside directors can be said not to have resulted in improved firm performance. Despite the greater monitoring, advising and networking capacity attributed to outside directors, the firms in the sample showed a significant presence of insider directors, an aspect that may be related to their greater knowledge of the firm, with a subsequently positive effect on strategic planning decisions. The negative effect of board size could indicate that the disadvantages of worse coordination, flexibility and communication inside large boards seem to be more important than the benefits of better manager control by the board of directors. / El objetivo es analizar la eficiencia del consejo de administración como mecanismo de gobierno corporativo. Para ello, analizamos el efecto de su composición, tamaño, actividad, estructura de liderazgo y mandato del máximo ejecutivo sobre los resultados empresariales. Para contrastar las hipótesis utilizamos una muestra de 307 PYMEs españolas, ninguna de las cuales cotiza en Bolsa. Nuestro principal resultado es el efecto negativo de la proporción de consejeros externos y tamaño del consejo sobre los resultados empresariales. Se puede decir que la presencia de consejeros externos no se traduce en la mejora de los resultados de la empresa. A pesar de la mayor capacidad de control, asesoramiento y creación de redes atribuida a los externos, las empresas de la muestra presentan una significativa presencia de consejeros internos, aspecto que puede estar relacionado con su mayor conocimiento de la empresa, con el consiguiente efecto positivo en las decisiones estratégicas de la misma. El efecto negativo del tamaño del consejo puede indicar que las desventajas de la peor coordinación, flexibilidad y comunicación dentro de los consejos de gran tamaño, parecen ser más importantes que los beneficios derivados del mayor control gerencial por parte del consejo.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://zl.elsevier.es/en/revista/investigaciones-europeas-direccion-economia-empresa-345/articulo/the-board-structure-and-firm-90218047
    File Function: complete text
    Download Restriction: no

    Bibliographic Info

    Article provided by Academia Europea de Dirección y Economía de la Empresa (AEDEM) in its journal Investigaciones Europeas de Dirección y Economía de la Empresa.

    Volume (Year): 19 (2013)
    Issue (Month): 3 ()
    Pages: 127-135

    as in new window
    Handle: RePEc:idi:jiedee:v:19:y:2013:i:3:p:127-135

    Contact details of provider:
    Postal: Investigaciones Europeas de Dirección y Economía de la Empresa, Facultad de Ciencias Económicas y Empresariales, Universidad de Vigo, Lagoas - Marcosende s/n, E-36310, Vigo, Pontevedra, España
    Phone: (+34) 986812473
    Fax: (+34) 986812401
    Web page: http://www.aedem-virtual.com/es/journal/iedee

    Related research

    Keywords: Board composition; Board size; SME; Duality; CEO tenure; Composición del consejo; Tamaño del consejo; PYME; Dualidad; Mandato del CEO;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:idi:jiedee:v:19:y:2013:i:3:p:127-135. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tony Crespo Franco).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.