The Board's Demography — Firm Performance Relationship Revisited: A Bayesian Approach

16 Pages Posted: 23 Jun 2016

See all articles by Jolien Huybrechts

Jolien Huybrechts

KIZOK- Centre for Entrepreneurship and Innovation / Hasselt University

Wim Voordeckers

Hasselt University - Faculty of Business Administration

Bert D'Espallier

KU Leuven - Faculty of Business and Economics (FEB)

Nadine Lybaert

Hasselt University

Anita Van Gils

University of Maastricht - Department of Organization & Strategy

Date Written: July 2016

Abstract

Building on behavioral theory, we argue that the effect of board demography on the performance of small and medium‐sized family firms differs significantly at the individual firm level and that the degree by which board task performance meets board task needs explains this effect. Using a Bayesian estimation method, we obtain firm specific estimates of the effect of board demography on firm performance. Analysis of these estimates indicates that the size of the gap between board task needs and board task performance explains the effects of the board demographic characteristics — board size and percentage of family directors — on firm performance.

Suggested Citation

Huybrechts, Jolien and Voordeckers, Wim and D'Espallier, Bert and Lybaert, Nadine and Van Gils, Anita, The Board's Demography — Firm Performance Relationship Revisited: A Bayesian Approach (July 2016). Journal of Small Business Management, Vol. 54, Issue 3, pp. 992-1007, 2016. Available at SSRN: https://ssrn.com/abstract=2799460 or http://dx.doi.org/10.1111/jsbm.12223

Jolien Huybrechts (Contact Author)

KIZOK- Centre for Entrepreneurship and Innovation / Hasselt University ( email )

Agoralaan - building D
Gebouw D
Diepenbeek, 3590
Belgium

Wim Voordeckers

Hasselt University - Faculty of Business Administration ( email )

Agoralaan - building D
Gebouw D
Diepenbeek, 3590
Belgium

Bert D'Espallier

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

Nadine Lybaert

Hasselt University ( email )

Agoralaan - building D
Gebouw D
Diepenbeek, 3590
Belgium

Anita Van Gils

University of Maastricht - Department of Organization & Strategy ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

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