Trends on the relationship between board size and financial and reputational corporate performance: The Colombian case

Purpose: The purpose of this paper is to investigate the relationship between board size (B-SIZE) and financial and reputational corporate performance in top companies ranked by the Business Monitor of Corporate Reputation – MERCO in Colombia. Design/methodology/approach: This paper conducts correla...

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Detalles Bibliográficos
Autores: Orozco, Luis Antonio, Vargas, Jose, Galindo Dorado, Helda Raquel
Tipo de recurso: artículo
Fecha de publicación:2018
País:España
Institución:Universidad Autónoma de Madrid
Repositorio:Biblos-e Archivo. Repositorio Institucional de la UAM
Idioma:inglés
OAI Identifier:oai:repositorio.uam.es:10486/685420
Acceso en línea:http://hdl.handle.net/10486/685420
https://dx.doi.org/10.1108/EJMBE-02-2018-0029
Access Level:acceso abierto
Palabra clave:Board size
Corporate reputation
Financial performance
Organizational theory
Colombia
Economía
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spelling Trends on the relationship between board size and financial and reputational corporate performance: The Colombian caseOrozco, Luis AntonioVargas, JoseGalindo Dorado, Helda RaquelBoard sizeCorporate reputationFinancial performanceOrganizational theoryColombiaEconomíaPurpose: The purpose of this paper is to investigate the relationship between board size (B-SIZE) and financial and reputational corporate performance in top companies ranked by the Business Monitor of Corporate Reputation – MERCO in Colombia. Design/methodology/approach: This paper conducts correlations and cluster analysis in order to classify firms based on performance and control variables, using a sectional sample of 84 large companies in Colombia over the period 2008-2012. Findings: This research founds that large boards are associated with high performance on corporate reputation, as stated by the resource dependence theory, and a low-financial performance, as predicted by the agency theory. However, the results indicate that there is no relation between financial and reputational performance. Research limitations/implications: This research considered only large companies listed by MERCO. Therefore, the results can only be generalized for top firms in Colombia according to this list. However, results add empirical evidence to theoretical debate between B-SIZE and firm performance considering financial and reputational indicators. Practical implications: According to the OECD manual of good corporate governance practices, the optimal B-SIZE has between five to nine core members. The board structure has a direct impact over the firm’s financial and reputational performance and must be carefully analyzed by shareholders to balance the size according to expected results and firm’s features like family ownership, exportation activities and norms of stock markets. Originality/value: This paper contributes to the existing literature on the relationship between B-SIZE and corporate performance with the evaluation of financial and reputational results for the case of an emerging economy. In Latin America, this analysis must go beyond OECD recommendations, and shall consider the context of an emerging country based on empirical evidence.Emerald Publishing LimitedDepartamento de ContabilidadFacultad de Ciencias Económicas y Empresariales20182018-01-01research articlehttp://purl.org/coar/resource_type/c_2df8fbb1VoRhttp://purl.org/coar/version/c_970fb48d4fbd8a85info:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10486/685420https://dx.doi.org/10.1108/EJMBE-02-2018-0029reponame:Biblos-e Archivo. Repositorio Institucional de la UAMinstname:Universidad Autónoma de MadridInglésengopen accesshttp://purl.org/coar/access_right/c_abf2info:eu-repo/semantics/openAccessoai:repositorio.uam.es:10486/6854202026-06-23T12:46:27Z
dc.title.none.fl_str_mv Trends on the relationship between board size and financial and reputational corporate performance: The Colombian case
title Trends on the relationship between board size and financial and reputational corporate performance: The Colombian case
spellingShingle Trends on the relationship between board size and financial and reputational corporate performance: The Colombian case
Orozco, Luis Antonio
Board size
Corporate reputation
Financial performance
Organizational theory
Colombia
Economía
title_short Trends on the relationship between board size and financial and reputational corporate performance: The Colombian case
title_full Trends on the relationship between board size and financial and reputational corporate performance: The Colombian case
title_fullStr Trends on the relationship between board size and financial and reputational corporate performance: The Colombian case
title_full_unstemmed Trends on the relationship between board size and financial and reputational corporate performance: The Colombian case
title_sort Trends on the relationship between board size and financial and reputational corporate performance: The Colombian case
dc.creator.none.fl_str_mv Orozco, Luis Antonio
Vargas, Jose
Galindo Dorado, Helda Raquel
author Orozco, Luis Antonio
author_facet Orozco, Luis Antonio
Vargas, Jose
Galindo Dorado, Helda Raquel
author_role author
author2 Vargas, Jose
Galindo Dorado, Helda Raquel
author2_role author
author
dc.contributor.none.fl_str_mv Departamento de Contabilidad
Facultad de Ciencias Económicas y Empresariales
dc.subject.none.fl_str_mv Board size
Corporate reputation
Financial performance
Organizational theory
Colombia
Economía
topic Board size
Corporate reputation
Financial performance
Organizational theory
Colombia
Economía
description Purpose: The purpose of this paper is to investigate the relationship between board size (B-SIZE) and financial and reputational corporate performance in top companies ranked by the Business Monitor of Corporate Reputation – MERCO in Colombia. Design/methodology/approach: This paper conducts correlations and cluster analysis in order to classify firms based on performance and control variables, using a sectional sample of 84 large companies in Colombia over the period 2008-2012. Findings: This research founds that large boards are associated with high performance on corporate reputation, as stated by the resource dependence theory, and a low-financial performance, as predicted by the agency theory. However, the results indicate that there is no relation between financial and reputational performance. Research limitations/implications: This research considered only large companies listed by MERCO. Therefore, the results can only be generalized for top firms in Colombia according to this list. However, results add empirical evidence to theoretical debate between B-SIZE and firm performance considering financial and reputational indicators. Practical implications: According to the OECD manual of good corporate governance practices, the optimal B-SIZE has between five to nine core members. The board structure has a direct impact over the firm’s financial and reputational performance and must be carefully analyzed by shareholders to balance the size according to expected results and firm’s features like family ownership, exportation activities and norms of stock markets. Originality/value: This paper contributes to the existing literature on the relationship between B-SIZE and corporate performance with the evaluation of financial and reputational results for the case of an emerging economy. In Latin America, this analysis must go beyond OECD recommendations, and shall consider the context of an emerging country based on empirical evidence.
publishDate 2018
dc.date.none.fl_str_mv 2018
2018-01-01
dc.type.none.fl_str_mv research article
http://purl.org/coar/resource_type/c_2df8fbb1
VoR
http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv http://hdl.handle.net/10486/685420
https://dx.doi.org/10.1108/EJMBE-02-2018-0029
url http://hdl.handle.net/10486/685420
https://dx.doi.org/10.1108/EJMBE-02-2018-0029
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Emerald Publishing Limited
publisher.none.fl_str_mv Emerald Publishing Limited
dc.source.none.fl_str_mv reponame:Biblos-e Archivo. Repositorio Institucional de la UAM
instname:Universidad Autónoma de Madrid
instname_str Universidad Autónoma de Madrid
reponame_str Biblos-e Archivo. Repositorio Institucional de la UAM
collection Biblos-e Archivo. Repositorio Institucional de la UAM
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,300719

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