Do the Board of Directors Composition and the Board Interlocking Influence on Performance?
Journal Title: BAR: Brazilian Administration Review - Year 2016, Vol 13, Issue 2
Abstract
This study analyzes the influence of composition of the Board of Directors and their social relations (board interlocking) on performance of Brazilian companies. A descriptive study based on documentary research was conducted with a total of 1,163 companies’ observations and 18,119 standardized observations regarding directors. Simultaneous equations were applied to the data analysis. The survey results showed that, regarding the influence of composition of the Board of Directors on the performance of the companies, among variables used to identify its characteristics, that some showed endogeneity. Among the characteristics of the Board of Directors, the duality of the board was exogenous when comparing market performance (Tobin’s Q) and the outsiders were also exogenous for internal performance (Return on Equity). Thus, the duality of the board is more influenced by the specificities of each company than by the market value of the companies. The characteristic outsiders are more influenced by the institutional environment than by the ROE. The practice of board interlocking proved to be insignificant in relation to the market value, indicating natural selection. Therefore, it is not possible to infer that the board interlocking can increase the dependency of the management, compromising the role of monitoring. Also, it is not possible to state that better positioned and central companies in the corporate relationships network show better performance.
Authors and Affiliations
Dal Vesco, Delci Grapégia; Beuren, Ilse Maria
Keywords
Related Articles
- EP ID EP40618
- DOI -
- Views 268
- Downloads 0
Gambiarra as an Emergent Approach in the Entanglement of the Organizational Aesthetic and Technical Controversies: The Samba School Parade Case
This paper aims to analyze the aesthetic and material/technical controversies surrounding the production of parade floats from a samba school. Starting from actor-network theory and controversy analysis, we show how acto...
Strategic Management in Hospitals: Tensions between the Managerial and Institutional Lens
The relationship between organizations and their environments has been object of study by scholars of the theory of organizations and in discussions concerning organizational strategy. When these perspectives come toget...
Business models in emerging markets
Within the academic research, specific topics or terms appear and quickly gain great popularity, becoming a “must have” in journals and conferences. One of those terms that currently sounds loud is business model (BM). A...
Credibility, audacity and joy: Brand personalities that connect users to social media
The main purpose of this article is to evaluate the influence brand personality has on customer loyalty in the context of social networks as brands. We conducted a survey of 268 social networks users in Brazil and analy...
Interpartner Differences and Governance Mode Dilemma: The Role of Alliance Scope
It is generally recognized that the governance structure of an alliance, equity versus nonequity, is an important strategic choice. Since an alliance teams up companies that are inevitably divergent in upstream resource...