Board Characteristics, Compliance, and Firm Performance: Empirical Findings from Colombia

Using data from a single database of Colombian firms, we confirmed an endogenous relationship between specific board characteristics, compliance with corporate governance guidelines, and firm performance. A board comprising experts without conflicts of interest is more likely to control ethical beha...

Full description

Saved in:
Bibliographic Details
Published in:Latin American business review (Binghamton, N.Y.) N.Y.), 2018-10, Vol.19 (3-4), p.263-295
Main Authors: Herrera-Echeverri, Hernán, Gaitan, Sandra, Antonio Orozco, Luis, Soto-Echeverry, Nidia
Format: Article
Language:English
Subjects:
Accounting standards
Audit committees
board characteristics
board compliance
Boards of directors
Compliance
Conflicts of interest
Corporate governance
emerging markets
Endogenous
Ethical conduct
Experts
Financial performance
firm performance
Organizational performance
Public policy
Strategic planning
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Using data from a single database of Colombian firms, we confirmed an endogenous relationship between specific board characteristics, compliance with corporate governance guidelines, and firm performance. A board comprising experts without conflicts of interest is more likely to control ethical behavior, implement audit committees, review compliance with accepted accounting standards, and approve and control the firm's strategic planning, all of which will lead to an improvement in firm results, and engagement and retention of higher quality board members. Conclusions have strong implications for public policy and managerial practice.
ISSN:1097-8526
1528-6932
DOI:10.1080/10978526.2018.1540935