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

Jolien Huybrechts; Wim Voordeckers; Bert D'Espallier; Nadine Lybaert; Anita Van Gils

doi:10.1111/jsbm.12223

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

Jolien Huybrechts^*, Wim Voordeckers, Bert D'Espallier, Nadine Lybaert, Anita Van Gils

^*Corresponding author for this work

Organisation,Strategy & Entrepreneurship

Research output: Contribution to journal › Article › Academic › peer-review

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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.

Original language	English
Pages (from-to)	992-1007
Number of pages	16
Journal	Journal of Small Business Management
Volume	54
Issue number	3
DOIs	https://doi.org/10.1111/jsbm.12223
Publication status	Published - Jul 2016

Keywords

FAMILY FIRMS
CORPORATE GOVERNANCE
FINANCIAL PERFORMANCE
BEHAVIORAL-THEORY
BLACK-BOX
DIRECTORS
SIZE
BUSINESSES
COMMITMENT
ACCESS

Access to Document

10.1111/jsbm.12223

Author's versionAccepted author manuscript, 200 KB

Cite this

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title = "The Board's Demography-Firm Performance Relationship Revisited: A Bayesian Approach",

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.",

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note = "own survey data",

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AU - Voordeckers, Wim

AU - D'Espallier, Bert

AU - Lybaert, Nadine

AU - Van Gils, Anita

N1 - own survey data

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AB - 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.

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KW - CORPORATE GOVERNANCE

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KW - BEHAVIORAL-THEORY

KW - BLACK-BOX

KW - DIRECTORS

KW - SIZE

KW - BUSINESSES

KW - COMMITMENT

KW - ACCESS

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