THE INFLUENCE OF DIVERSITY ON BOARDS ON PROFITABILITY: AN OVERVIEW ACROSS IBERIAN NON-FINANCIAL LISTED COMPANIES

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Ilídio Tomás Lopes ORCID logo, Duarte Pitta Ferraz ORCID logo, Maria Manuela Martins ORCID logo

https://doi.org/10.22495/cocv13i2c2p6

Abstract

In modern economies, the corporate governance principles have been understood as drivers that mitigate the risk derived from the existing gap between managerial practices and ownership structure. This research contributes to the literature review, analyzing the relationship between the board characteristics, audit firms, and a set of indicators taken as proxies of performance. Based on a dataset of 124 non-financial companies, a linear model was regressed. We found that some characteristics of board of directors significantly influence the companies’ performance. These new insights can also provide new guidelines for policy makers towards the establishment of new common rules and principles that accurately grant the efficiency of corporate governance mechanisms and ensure the desired international comparability.

Keywords: Corporate Governance, Diversity on Boards, Profitability, Portugal, Spain, Iberian Countries

How to cite this paper: Lopes, I.T., Ferraz, D.P., Martins, M.M. (2016). The influence of diversity on boards on profitability: an overview across Iberian non-financial listed companies. Corporate Ownership & Control, 13(2-2), 454-460. https://doi.org/10.22495/cocv13i2c2p6