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

See all articles by Ruan Carlos dos Santos

Ruan Carlos dos Santos

Centro Universitário UNIAVAN; Universidade do Vale do Itajaí

Lidinei Éder Orso

Universidade do Vale do Itajaí

Rosilene Marcon

UNIVALI - Universidade do Vale do Itajai

Suzete Lizote

University of Itajai Valley UNIVALI

Date Written: June 7, 2018

Abstract

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

Santos, Ruan Carlos dos and Orso, Lidinei Éder and Marcon, Rosilene and Lizote, Suzete, Board of Directors: The Perspective of Independents in the Performance of Private Organizations? Evidences in Brazil (June 7, 2018). RAM, São Paulo, 19(4), 2018, Available at SSRN: https://ssrn.com/abstract=3623644

Ruan Carlos dos Santos (Contact Author)

Centro Universitário UNIAVAN ( email )

Av. Marginal Leste 3600
Estados
Balneário Camboriú, SC Santa Catarina 88340-000
Brazil
(47) 3363-0631 (Phone)
(47) 3363-0631 (Fax)

HOME PAGE: http://https://www.uniavan.edu.br/unidade/balneario-camboriu

Universidade do Vale do Itajaí ( email )

Rua Uruaguai, 458
Bloco D, Sala 420
Itajaí, SC Santa Catarina 88302-202
Brazil

Lidinei Éder Orso

Universidade do Vale do Itajaí ( email )

Rua Uruaguai, 458
Bloco D, Sala 420
Itajaí, SC Santa Catarina 88302-202
Brazil

Rosilene Marcon

UNIVALI - Universidade do Vale do Itajai ( email )

Programa de Pós-Graduação em Administração
SC 88010002
Brazil
+554832799552 (Phone)
+554832799552 (Fax)

HOME PAGE: http://www.univali.br/ppga

Suzete Lizote

University of Itajai Valley UNIVALI ( email )

Campus IV - Biguacu
Santa Catarina 88160000
Brazil

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