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

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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

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10.1111/jsbm.12223

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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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author = "Jolien Huybrechts and Wim Voordeckers and Bert D'Espallier and Nadine Lybaert and {Van Gils}, Anita",

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AU - Voordeckers, Wim

AU - D'Espallier, Bert

AU - Lybaert, Nadine

AU - Van Gils, Anita

N1 - own survey data

PY - 2016/7

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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

KW - FINANCIAL PERFORMANCE

KW - BEHAVIORAL-THEORY

KW - BLACK-BOX

KW - DIRECTORS

KW - SIZE

KW - BUSINESSES

KW - COMMITMENT

KW - ACCESS

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JO - Journal of Small Business Management

JF - Journal of Small Business Management

IS - 3

ER -

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

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Keywords

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