Board Composition in Small and Medium-Sized Family Firms

A.E.J. van Gils, W. Voordeckers*, J.A.G.M. van den Heuvel

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

This study focuses on the determinants of board composition in belgian small and medium-sized family firms. It extends the empirical literature on board composition in private small and medium-sized family enterprises by integrating several dimensions of the “family component” in the research model. Furthermore, using a multinomial logit model, we examine in which circumstances family firms opt for (1) a family board, (2) an inside board, or (3) an outside board. Results suggest that family-related contingency variables are far more important than ceo-related or control variables, giving support to the argument that board composition in family firms is a reflection of the family characteristics and objectives. Moreover, the results suggest that a resource dependence and added value perspective explain more of the variation in board composition than agency considerations.
Original languageEnglish
Pages (from-to)137-156
JournalJournal of Small Business Management
Volume45
Issue number1
DOIs
Publication statusPublished - 1 Jan 2007

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