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

Research output: Contribution to journalArticleAcademicpeer-review

5 Citations (Web of Science)
231 Downloads (Pure)

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 languageEnglish
Pages (from-to)992-1007
Number of pages16
JournalJournal of Small Business Management
Volume54
Issue number3
DOIs
Publication statusPublished - Jul 2016

Keywords

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

Cite this