IDEAS home Printed from https://ideas.repec.org/a/cup/jomorg/v20y2014i03p313-332_00.html
   My bibliography  Save this article

Board independence and firm performance in Southern Europe: A contextual and contingency approach

Author

Listed:
  • García-Ramos, Rebeca
  • García-Olalla, Myriam

Abstract

This study analyses whether or not the effect of board independence on a firm's strategic performance is moderated by family involvement in ownership and control. Moderation of the board's size and the independent director ratio are tested under quadratic specifications. The effect of CEO duality with family involvement on long-term sales growth is also measured. The empirical analysis is conducted in the Southern European context using a sample of publicly traded firms that have concentrated ownership structures. The main findings indicate that when nonlinearities are considered, family involvement moderates the relationship between the independent director ratio and firm performance. The optimal proportion of independent directors is lower in family businesses than in non-family ones. However, the results fail to support nonlinearities for board size. We find positive linear relationships between both board size and CEO duality with firm performance, which are not moderated by family involvement.

Suggested Citation

  • García-Ramos, Rebeca & García-Olalla, Myriam, 2014. "Board independence and firm performance in Southern Europe: A contextual and contingency approach," Journal of Management & Organization, Cambridge University Press, vol. 20(3), pages 313-332, May.
    • Handle: RePEc:cup:jomorg:v:20:y:2014:i:03:p:313-332_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1833367214000236/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jomorg:v:20:y:2014:i:03:p:313-332_00. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jmo .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.