Relationship between the implementation of formal board processes and structures and financial performance: the role of absolute family control in Colombian family businesses

IF 3.6 Q2 MANAGEMENT
Sanjay Goel, Diógenes Lagos, María Piedad López
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引用次数: 0

Abstract

Purpose

We investigate the effect of the adoption of formal board structure and board processes on firm performance in Colombian family firms, in a context where firms can choose specific aspects of board structure and processes. We deploy insights from the behavioral governance perspective to develop arguments about how family businesses may choose board elements based on their degree of control over the firm (absolute control or less), and its effect on firm performance.

Design/methodology/approach

We use an unbalanced data panel of 404 firm-year observations. The data was obtained from the annual financial and corporate governance reports of 62 Colombian stock-issuing firms for the period 2008–2014 – due to change in regulation, data could not be added beyond 2014. Panel data technique with random effects was used.

Findings

The results show that board structure is positively associated with financial performance, however, this relationship is negative in businesses where family has absolute control. We also found that there is a negative association between board processes and performance, but positive association in family-controlled businesses.

Originality/value

Our research contributes to research streams on effects of family control in firm choices and on the interactive effect of governance choices and institutional context and more generally how actors interact (rather than react) with their institutional context.

董事会正式程序和结构的实施与财务业绩之间的关系:哥伦比亚家族企业中家族绝对控制权的作用
目的在企业可以选择董事会结构和程序的特定方面的背景下,我们研究了哥伦比亚家族企业采用正式董事会结构和董事会程序对企业绩效的影响。我们从行为治理的角度出发,论证了家族企业如何根据其对公司的控制程度(绝对控制或较少)选择董事会要素,以及这些要素对公司业绩的影响。数据来自哥伦比亚 62 家股票发行公司 2008-2014 年期间的年度财务和公司治理报告,由于监管的变化,2014 年以后的数据无法添加。研究结果表明,董事会结构与财务业绩正相关,但在家族拥有绝对控制权的企业中,这种关系为负。我们还发现,董事会程序与绩效之间存在负相关关系,但在家族控制的企业中却存在正相关关系。原创性/价值我们的研究为有关家族控制对企业选择的影响、治理选择与制度环境的互动影响以及更广泛意义上的行为者如何与其制度环境互动(而非反应)的研究流做出了贡献。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
5.50
自引率
33.30%
发文量
51
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