"Outside directors, board interlocks and firm performance: Empirical evidence from Colombian business groups"

"We investigate the relation of board structure through the appointments of outside directors and the role of busy directors on firm return on assets within an environment of no regulation for privately held firms and voluntary adoption of corporate best practices for security issuers with fami...

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Autores Principales: Pombo C., Gutiérrez, Luis H.
Formato: Artículo (Article)
Lenguaje:Inglés (English)
Publicado: 2011
Materias:
Acceso en línea:https://repository.urosario.edu.co/handle/10336/22339
https://doi.org/10.1016/j.jeconbus.2011.01.002
id ir-10336-22339
recordtype dspace
spelling ir-10336-223392021-09-08T22:21:27Z "Outside directors, board interlocks and firm performance: Empirical evidence from Colombian business groups" Pombo C. Gutiérrez, Luis H. Board interlocks Busy directors Colombian corporations Control contestability Corporate governance Firm performance Outside directors "We investigate the relation of board structure through the appointments of outside directors and the role of busy directors on firm return on assets within an environment of no regulation for privately held firms and voluntary adoption of corporate best practices for security issuers with family controlling blockholders. This study relies on a sample of an average of 335 firms per year for the 1996-2006 period, where 244 are private firms and 285 are affiliated to one of the seven largest non-financial business groups in the country. Five of these groups were, in 2006, still family-controlled. We find a positive relation between both the ratio of outside directors, and the degree of board interlocks, with firm return-on-assets. Outside busy directors turned out to be key drivers of improved firm performance. Appointments of outsiders are endogenous to firm ownership structure. Blockholder activism as well as contestability becomes an internal mechanism that improves director monitoring and ex-post firm valuation. © 2011 Elsevier Inc." 2011 2020-05-25T23:56:09Z info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion 1486195 https://repository.urosario.edu.co/handle/10336/22339 https://doi.org/10.1016/j.jeconbus.2011.01.002 eng info:eu-repo/semantics/openAccess application/pdf instname:Universidad del Rosario reponame:Repositorio Institucional EdocUR
institution EdocUR - Universidad del Rosario
collection DSpace
language Inglés (English)
topic Board interlocks
Busy directors
Colombian corporations
Control contestability
Corporate governance
Firm performance
Outside directors
spellingShingle Board interlocks
Busy directors
Colombian corporations
Control contestability
Corporate governance
Firm performance
Outside directors
Pombo C.
Gutiérrez, Luis H.
"Outside directors, board interlocks and firm performance: Empirical evidence from Colombian business groups"
description "We investigate the relation of board structure through the appointments of outside directors and the role of busy directors on firm return on assets within an environment of no regulation for privately held firms and voluntary adoption of corporate best practices for security issuers with family controlling blockholders. This study relies on a sample of an average of 335 firms per year for the 1996-2006 period, where 244 are private firms and 285 are affiliated to one of the seven largest non-financial business groups in the country. Five of these groups were, in 2006, still family-controlled. We find a positive relation between both the ratio of outside directors, and the degree of board interlocks, with firm return-on-assets. Outside busy directors turned out to be key drivers of improved firm performance. Appointments of outsiders are endogenous to firm ownership structure. Blockholder activism as well as contestability becomes an internal mechanism that improves director monitoring and ex-post firm valuation. © 2011 Elsevier Inc."
format Artículo (Article)
author Pombo C.
Gutiérrez, Luis H.
author_facet Pombo C.
Gutiérrez, Luis H.
author_sort Pombo C.
title "Outside directors, board interlocks and firm performance: Empirical evidence from Colombian business groups"
title_short "Outside directors, board interlocks and firm performance: Empirical evidence from Colombian business groups"
title_full "Outside directors, board interlocks and firm performance: Empirical evidence from Colombian business groups"
title_fullStr "Outside directors, board interlocks and firm performance: Empirical evidence from Colombian business groups"
title_full_unstemmed "Outside directors, board interlocks and firm performance: Empirical evidence from Colombian business groups"
title_sort "outside directors, board interlocks and firm performance: empirical evidence from colombian business groups"
publishDate 2011
url https://repository.urosario.edu.co/handle/10336/22339
https://doi.org/10.1016/j.jeconbus.2011.01.002
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