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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

Listed author(s):
  • Arosa, Blanca


    (Universidad de Oviedo (España))

  • Iturralde, Txomin


    (Universidad de Oviedo (España))

  • Maseda, Amaia


    (Universidad de Oviedo (España))

Registered author(s):

    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.

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    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

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    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
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