Board of Directors: The Perspective of Independents in the Performance of Private Organizations? Evidences in Brazil
RAM, São Paulo, 19(4), 2018
28 Pages Posted: 2 Jul 2020 Last revised: 11 Nov 2020
Date Written: June 7, 2018
Purpose: The study seeks to verify the influence of the board of directors’ independence on the performance of BM&FBOVESPA listed companies and to analyse which agency conflicts influence the performance of the board of directors.
Originality/value: The factor of Brazil being an emerging country which lacks a strict legal system and control factors against corruption in these environments and the public sectors emphasizes the importance of applying the best corporate governance practice code in the main developed countries, reflecting the need for effective supervisory bodies that contribute to better financial performance of companies.
Design/methodology/approach: The study involved a quantitative survey using a sample of 33 companies in the highway operating segment and 220 reports from 2010 to 2016. A fixed-effects regression model with panel data was used for analysis.
Findings: The results were statistically significant for the board’s independence variables, which confirm the theory that the presence of independents as members of the board positively influences financial management and the company that holds the executive member and chairman of the board positions has a negative effect. The size of the board did not present statistical significance.
Keywords: Agency theory, Corporate governance, Board of administration, Independent advisor, Performance
JEL Classification: G34
Suggested Citation: Suggested Citation