Original scientific paper

https://doi.org/10.1080/1331677X.2019.1694558

Ibero-American corporate ownership and boards of directors: implementation and impact on firm value in Chile and Spain

Paolo Saona
Laura Muro
Pablo San Martín orcid.org/0000-0002-1944-9399
Carlos Cid

Abstract

From a corporate governance point of view, this paper addresses
the question of how corporate ownership and board characteristics
influence firm value for a sample of Ibero-American companies.
Specifically, we analyse indexed non-financial companies
from Chile and Spain for the period 2007 – 2016, using the GMM
panel data technique. Our research is novel in considering a twocountry
approach, with one emerging and one developed country,
and in analysing how corporate ownership and board characteristics,
in addition to contextual variables, determine firm value. Our
results assess the efficiency of corporate governance mechanisms.
Although findings are intriguing regarding ownership concentration,
they confirm the benefits of a good board of directors. This
type of board is characterised by a large size, sufficiently independent
directors, and a balance in terms of gender diversity. We
provide several policy recommendations from our main findings.

Keywords

Corporate governance; corporate ownership; board characteristics; firm value; panel data

Hrčak ID:

254589

URI

https://hrcak.srce.hr/254589

Publication date:

9.2.2021.

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