Company financial performance: Does board size matter? Case of the EUROSTOXX50 index
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Published
18-09-2018
Mercedes Rodríguez Fernández
Abstract
This study analyzes the relationship between board size and economic-financial performance in a sample of European firms that constitute the EUROSTOXX50 Index. Based on previous literature, resource dependency and agency theories, and considering regulation developed by the OECD and European Union on the normative of corporate governance for each country in the sample, the authors propose the hypotheses of both positive linear and quadratic relationships between the researched parameters. Using ROA as a benchmark of financial performance and the number of members of the board as measurement of the board size, two OLS estimations are performed. To confirm the robustness of the results the empirical study is tested with two other similar financial ratios, ROE and Tobin's Q. Due to the absence of significant results, an additional factor, firm size, is employed in order to check if it affects firm performance. Delving further into the nature of this relationship, it is revealed that there exists a strong and negative relation between firm size and financial performance. Consequently, it can be asseverated that the generic recommendation "one size fits all" cannot be applied in this case; which conforms to the Recommendations of the European Union that dissuade using generic models for all countries.
How to Cite
Rodríguez Fernández, M. (2018). Company financial performance: Does board size matter? Case of the EUROSTOXX50 index. Cuadernos De Gestión, 15(2), 15–38. https://doi.org/10.5295/cdg.140474mr
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Keywords
Corporate governance, board size, ROA, ROE, Tobin´s Q, EUROSTOXX50 Index
References
Alves, C. and Mendes, V., 2004. Corporate governance policy and company performance: The Experimenta sidebar case. Corporate Governance: An International Review, 12(3), 290-301.
Ameer, R., Ramli, F. and Zakaria, H., 2010. A new perspective on board composition and firm performance in an emerging market. Corporate Governance, 10(4), 647- 661.
Anatolyev, S., 2003. Durbin-watson statistic and random individual effects. Econometric Theory, 19(5), 882-883.
Baliga, B. R. and Moyer, C., 1996. CEO Duality and Firm Performance. What´s the fuss? Strategic Management Journal, 17(1), 41-53.
Barney, J., 1991. Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Barroso Castro, C.; Domínguez de la Concha, M.; Vecino Gravel, J. and Villegas Periñan, M. M., 2009. Does the team leverage the board’s decisions. Corporate Governance: An International Review, 17(6), 744-761.
Barroso Castro, C.; Villegas Periñan, M. M. and Perez-Calero, L., 2010. What are effective boards of directors? The effectiveness of the Council and the results of the company. Investigaciones Europeas de Dirección y Economía de la Empresa, 16(3), 107-126.
Barroso Castro, C.; Villegas Perinan, M. M. and Perez-Calero, L., 2011. Board influence on a firm’s internationalization. Corporate Governance: An International Review, 19(4), 351-367.
Baliga, B. R. and Moyer, C., 1996. CEO Duality and Firm Performance. What´s the fuss? Strategic Management Journal, 17(1), 41-53.
Beiner, S.; Drobetz, W.; Schmid, F. and Zimmermann, H., 2004. Board size is an independent corporate governance mechanism? Kyklos, 57 (3), 327-356.
Bhagat, S. and Black, B., 2002. The non-correlation between board independence and long-term firm performance. Journal of Corporation Law, 27(2), 231- 273.
Brick, I. E. and Chidambaran, N.K., 2010. Board meetings, committee structure and firm value. Journal of Corporate Finance, 16 (4), 533-553.
CNMV, 1998. Report of the special commission for the study of an ethical code of the boards of directors of the companies (Olivencia Report). National Commission for the Securities Market.
CNMV, 2003. Report of the special commission for the promotion of transparency and security in the markets and listed companies (Aldama Report). National Commission for the Securities Market.
CNMV, 2006. Unified Code of corporate governance of listed companies (Conthe Code). National Commission for the Securities Market.
Conyon, M. J. and Peck, S. I., 1998. Board size and corporate performance: Evidence from European countries. The European Journal of Finance, 4 (3), 291-304.
Crespi, R., 2010. Observatory of corporate governance and transparency of information of companies quoted on the continuous market Spanish. Papers of the Foundation, 40. Foundation for Financial Studies.
Cuervo, A., 2002. Corporate governance mechanisms: A plea for less code of good governance and more market control. Corporate Governance: An International Review, 10 (2), 84-93.
Dalton, D. R., Daily, C. M., Ellstrand, A. E. and Johnson, J. L., 1998. Meta-analytic reviews of board composition, leadership structure, and financial performance. Strategic Management Journal, 19 (3), 269-290.
Dalton, D. R., Daily, C. M., Ellstrand, A. E. and Johnson, J. L., 1999. Number of directors and financial performance. A meta-analysis. Academy of Management Journal, 42(6), 674- 686.
Daraghma, Z. M. A. and Alsinawi, A. A., 2010. Board of Directors, Management Ownership and Capital Structure and Its Effect on Performance. The Case of Palestine Securities Exchange. International Journal of Business and Management, 5(11), 118- 127.
De Andres, P.; Azofra, V. and Lopez, F., 2005. Corporate boards in OECD countries: size, composition, functioning and effectiveness. Corporate Governance: An International Review, 13(2), 197- 210.
De Andres, P. and Vallelado, E., 2008. Corporate governance in banking: The role of the board of directors. Journal of Banking and Finance, 32, 2570-2580.
Dey, D. K. and Chauchan, Y. K., 2009. Board Composition and Performance in Indian firms: A Comparison. IUP Journal of Corporate Governance, 8(2), 7-19.
Di Pietra, R., Grambovas, C. A., Raonic, I. and Riccaboni, A., 2008. The effects of board size and ‘busy’ directors on the market value of Italian companies. IUP Journal of Management and Governance, 12(1), 73-91.
Donaldson, L., 1999. Making stakeholder theory whole. Academy of Management. The Academy of Management Review, 24 (2), 237-241.
Donaldson, T. and Preston, L. E., 1995. The Stakeholder theory of the corporation: Concepts, evidence and implications. Academy of Management Review, 20(1), 65-91.
Dowell, G. W. S., Shakell, M. B. and Stuart, N. V., 2011. Boards, CEOS, and surviving a Financial Crisis: Evidence from the Internet shakeout. Strategic Management Journal, 10 (32), 1025-1045.
Drakos, A. A. and Bekiris, F. V., 2010. Endogeneity and the relationship between board structure and firm performance: a simultaneous equation analysis for the Athens Stock Exchange. Managerial and Decision Economics, 31(6), 387-401.
EC, 2005. Recommendations of the European Commission, February 15 th.
Ehikioya, B. I., 2009. Corporate governance structure and firm performance in developing economies: evidence from Nigeria. Corporate Governance, 9(3), 231-243.
Elsayed, K., 2007. Does CEO Duality Really Affect Corporate Performance? Corporate Governance: An International Review, 15(6), 1203-1214.
EU, 2012. Rules of corporate governance for the European companies (European Parliament Resolution of 29 March 2012, on a regulation of corporate governance for European companies 2011/2181(INI)). Obtained in http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P7-TA-2012-0118&language=ES&ring=A7-2012-0051 (accessed 10/22/12).
Fama, E. F., 1980. Agency problems and the theory of the firm. Journal of Political Economy, 88(2), 288-307.
Fama E. F. and Jensen, M. C., 1983. Separation of ownership and control. Journal of Law and Economics, 26(2), 301-325.
Fernandez, A. I., Gomez-Anson, S. and Fernández-Méndez, C., 1998. The supervisory role of the board of directors on the managerial performance. Evidence for the case of Spain. Economic Research, 23(3), 501-516.
Ferris, S. P., Jagannathan, M. and Pritchard, A. C., 2003. Too Busy to Mind the Business? Monitoring by Directors with Multiple Board Appointments. The Journal of Finance, 58(3), 1087-1112.
Fich, E. M. and Shivdasani, A., 2006. Are Busy Boards Effective Monitors? The Journal of Finance, 61(2), 689-724.
Freeman, R. E., 1984. Strategic management: A stakeholder approach. Boston: Pitman.
Frooman, J., 1999. Stakeholder influence strategies. Academy of Management Review, 24, 191-205.
Gill, M. S., Vijay, T. S. and Jha, S., 2009. Corporate Governance Mechanisms and firm Performance: A Survey of Literature, Journal of IUP Corporate Governance, 8(1), 7-21.
Goergen, M., Manjon, M.C. and Renneboog, L., 2008. Is the German system of corporate governance converging towards the Anglo-American model? Journal of Management and Governance, 12, pp. 37–71. DOI: 10.1007/s10997-007-9040-7
Grant, R. M., 1991. The resource-based theory of competitive advantage: Implications for strategy formulation. California Management Review, 33(3), 114-135.
Guest, P. M., 2009. The impact of board size on firm performance: evidence from the UK. The European Journal of Finance, 15(4), 385-404.
Gujarati, D. N., 2003. Basic Econometric. Boston: Mcgraw-Hill.
Gutierrez, I. and Surroca, J., 2012. Revisiting corporate governance through the lens of the Spanish evidence. Journal of Management and Governance. DOI:10.1007/s10997-012-9250-5
Hu, H. W., Tam, O. K. and Tan, M. G., 2010. Internal governance mechanisms and firm performance in China. Asia Pacific Journal of Management, 27(4), 727-749.
International Corporate Governance Network (ICGN), 2014. Consulted on www.icgn.org (accesed 4/14/2014)
Jackling, B. and Johl, S., 2009. Board structure and firm performance: Evidence from India’s top companies. Corporate Governance: An International Review, 17(4), 492-509.
Jensen, M. C. and Meckling, W. H., 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Judge, W., Naoumova, Q. and Koutzevol, N., 2003. Corporate governance and firm performance in Russia: An empirical study. Journal of World Business, 38(4), 385-396.
Kaczmarek, S., Kimino, S. and Pye, A., 2011. Board task-related faultlines and firm performance: A decade of evidence. Corporate Governance: An International Review. DOI: 10.1111/j.1467-8683.2011.00895.x
Kiel, G. C. and Nicholson, G. J., 2003. Board Composition and Corporate Performance: how the Australian experience informs contrasting theories of corporate governance, Corporate Governance: An International Review, 11(3), pp. 189-205.
Kota, H. B. and Tomar, S., 2010. Corporate governance practices in Indian firms. Journal of Management and Organization, 16(2), 266-279.
Larmou, S. and Vafeas, N., 2010. The relation between board size and firm performance in firms with a history of poor operating performance. Journal of Management and Governance, 14(1), 61-85.
Lehn, K. M., Patro, S. and Zhao, M., 2009. Determinants of the size and composition of US Corporate Boards: 1935-2000. Financial Management, 38 (4), 747-780.
Lin, C.; Ma, Y. and Su, D., 2009. Corporate governance and firm efficiency: Evidence from China’s publicly listed firms. Managerial and Decision Economics, 30(3), 193.
Mak, Y. T. and Kusnadi, Y., 2005. Size really matters: Further evidence on the negative relationship between board size and firm value. Pacific-Basin Finance Journal, 13 (3), 301-318.
McIntyre, M. L., Murphy, S. A. and Mitchell, P., 2007. The top team: examining board composition and firm performance. Corporate Governance, 7(5), 547-561.
Miwa, Y. and Ramseyer, J.M., 2005. Who appoints them, what do they do? Evidence on outside directors from Japan. Journal of Economics and Management Strategy, 14(2), 299-337.
Mura, R., 2007. Firm Performance: Do Non-Executive Directors Have Minds of their Own? Evidence from UK Panel Data. Financial Management, 36(3), 81-112.
OECD, 2004. OECD Principles of Corporate Governance. Obtained in http://www.oecd.org/daf/corporateaffairs/corporategovernanceprinciples/37191543.pdf, (accessed 22/10/ 12).
O’Connell, V. and Cramer, N., 2010. The relationship between firm performance and board characteristics in Ireland. European Management Journal, 28(5), 387-399.
Palmer, D. and Barber, B. M., 2001. Challengers, elites and owning families: a social class theory of corporate acquisitions in the 1960s. Administrative Science Quarterly ,46(1), 87-120.
Pfeffer, J., 1973. Size, composition and function of hospital boards of directors: A study of organization-environment linkage. Administrative Science Quarterly, 18(3), 349-364.
Pfeffer, J. and Salancik, G. R., 1978. The external control of organizations: A Resource dependence perspective. New York: Harper & Row.
Preston, L. E., 1998. Agents, stewards and stakeholder, Academy of Management. The Academy of Management Review, 23(1), 9-13.
Raja, J. and Kumar, A., 2008. SME entrepreneurship, firm performance, and corporate governance practices in Indian service firms. Journal of Services Research, 7(2), 99-113.
Reddy, K., Locke, S. and Scrimgeour, F., 2010. The efficacy of principle-based corporate governance practices and firm financial performance: An empirical investigation. International Journal of Managerial Finance, 6(3), 190-219.
Rodríguez Fernández, M., Fernández Alonso, S. and Rodríguez Rodríguez, J., 2013. Estructura del consejo de administración y rendimiento de la empresa española cotizada. Revista Europea de Dirección y Economía de la Empresa, 22, 155-168.
Schmid, M. M. and Zimmermann, H., 2008. Should chairman and CEO be separated? Leadership structure and firm performance in Switzerland. Schmalenbach Business Review: ZFBF, 60, 182-204.
Seidl, D., Sanderson, P. and Roberts, J., 2013. Applying the ‘comply-or-explain’ principle: discursive legitimacy tactics with regard to codes of corporate governance. Journal of Management & Governance, 17, 791–826. DOI: 10.1007/s10997-011-9209-y
Soltani, B. and Maupetit, C., 2013. Importance of core values of ethics, integrity and accountability in the European corporate governance codes. Journal of Management Governance. DOI: 10.1007/s10997-013-9259-4
Spencer Stuart, 2011. Spain 2011.Index Spencer Stuart of Boards of Directors, 15th ed.
Stanwick, P. A. and Stanwick, S. D., 2010. The Relationship Between Corporate Governance and Financial Performance: An Empirical Study of Canadian Firms. The Business Review, Cambridge, 16(2), 35-41.
Steen T., 2006. The hidden meaning of codes: Corporate governance and investor rent seeking. European Business Organization Law Review, 7(4), 845-861.
Sternberg, E., 1997. The defects of stakeholder theory. Corporate Governance, 5(1), 3-10.
Tin Yan Lam, and Shu Kam Lee., 2008. CEO duality and firm performance: Evidence from Hong Kong. Corporate Governance, 8(3), 299-316.
Uadiale, O. M., 2010. The Impact of Board Structure on Corporate Financial Performance in Nigeria. International Journal of Business and Management, 5 (10), 155-166.
Yammeesri, J. and Herath, S. K., 2010. Board characteristics and corporate value: evidence from Thailand. Corporate Governance, 10 (3), 279-292.
Ameer, R., Ramli, F. and Zakaria, H., 2010. A new perspective on board composition and firm performance in an emerging market. Corporate Governance, 10(4), 647- 661.
Anatolyev, S., 2003. Durbin-watson statistic and random individual effects. Econometric Theory, 19(5), 882-883.
Baliga, B. R. and Moyer, C., 1996. CEO Duality and Firm Performance. What´s the fuss? Strategic Management Journal, 17(1), 41-53.
Barney, J., 1991. Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Barroso Castro, C.; Domínguez de la Concha, M.; Vecino Gravel, J. and Villegas Periñan, M. M., 2009. Does the team leverage the board’s decisions. Corporate Governance: An International Review, 17(6), 744-761.
Barroso Castro, C.; Villegas Periñan, M. M. and Perez-Calero, L., 2010. What are effective boards of directors? The effectiveness of the Council and the results of the company. Investigaciones Europeas de Dirección y Economía de la Empresa, 16(3), 107-126.
Barroso Castro, C.; Villegas Perinan, M. M. and Perez-Calero, L., 2011. Board influence on a firm’s internationalization. Corporate Governance: An International Review, 19(4), 351-367.
Baliga, B. R. and Moyer, C., 1996. CEO Duality and Firm Performance. What´s the fuss? Strategic Management Journal, 17(1), 41-53.
Beiner, S.; Drobetz, W.; Schmid, F. and Zimmermann, H., 2004. Board size is an independent corporate governance mechanism? Kyklos, 57 (3), 327-356.
Bhagat, S. and Black, B., 2002. The non-correlation between board independence and long-term firm performance. Journal of Corporation Law, 27(2), 231- 273.
Brick, I. E. and Chidambaran, N.K., 2010. Board meetings, committee structure and firm value. Journal of Corporate Finance, 16 (4), 533-553.
CNMV, 1998. Report of the special commission for the study of an ethical code of the boards of directors of the companies (Olivencia Report). National Commission for the Securities Market.
CNMV, 2003. Report of the special commission for the promotion of transparency and security in the markets and listed companies (Aldama Report). National Commission for the Securities Market.
CNMV, 2006. Unified Code of corporate governance of listed companies (Conthe Code). National Commission for the Securities Market.
Conyon, M. J. and Peck, S. I., 1998. Board size and corporate performance: Evidence from European countries. The European Journal of Finance, 4 (3), 291-304.
Crespi, R., 2010. Observatory of corporate governance and transparency of information of companies quoted on the continuous market Spanish. Papers of the Foundation, 40. Foundation for Financial Studies.
Cuervo, A., 2002. Corporate governance mechanisms: A plea for less code of good governance and more market control. Corporate Governance: An International Review, 10 (2), 84-93.
Dalton, D. R., Daily, C. M., Ellstrand, A. E. and Johnson, J. L., 1998. Meta-analytic reviews of board composition, leadership structure, and financial performance. Strategic Management Journal, 19 (3), 269-290.
Dalton, D. R., Daily, C. M., Ellstrand, A. E. and Johnson, J. L., 1999. Number of directors and financial performance. A meta-analysis. Academy of Management Journal, 42(6), 674- 686.
Daraghma, Z. M. A. and Alsinawi, A. A., 2010. Board of Directors, Management Ownership and Capital Structure and Its Effect on Performance. The Case of Palestine Securities Exchange. International Journal of Business and Management, 5(11), 118- 127.
De Andres, P.; Azofra, V. and Lopez, F., 2005. Corporate boards in OECD countries: size, composition, functioning and effectiveness. Corporate Governance: An International Review, 13(2), 197- 210.
De Andres, P. and Vallelado, E., 2008. Corporate governance in banking: The role of the board of directors. Journal of Banking and Finance, 32, 2570-2580.
Dey, D. K. and Chauchan, Y. K., 2009. Board Composition and Performance in Indian firms: A Comparison. IUP Journal of Corporate Governance, 8(2), 7-19.
Di Pietra, R., Grambovas, C. A., Raonic, I. and Riccaboni, A., 2008. The effects of board size and ‘busy’ directors on the market value of Italian companies. IUP Journal of Management and Governance, 12(1), 73-91.
Donaldson, L., 1999. Making stakeholder theory whole. Academy of Management. The Academy of Management Review, 24 (2), 237-241.
Donaldson, T. and Preston, L. E., 1995. The Stakeholder theory of the corporation: Concepts, evidence and implications. Academy of Management Review, 20(1), 65-91.
Dowell, G. W. S., Shakell, M. B. and Stuart, N. V., 2011. Boards, CEOS, and surviving a Financial Crisis: Evidence from the Internet shakeout. Strategic Management Journal, 10 (32), 1025-1045.
Drakos, A. A. and Bekiris, F. V., 2010. Endogeneity and the relationship between board structure and firm performance: a simultaneous equation analysis for the Athens Stock Exchange. Managerial and Decision Economics, 31(6), 387-401.
EC, 2005. Recommendations of the European Commission, February 15 th.
Ehikioya, B. I., 2009. Corporate governance structure and firm performance in developing economies: evidence from Nigeria. Corporate Governance, 9(3), 231-243.
Elsayed, K., 2007. Does CEO Duality Really Affect Corporate Performance? Corporate Governance: An International Review, 15(6), 1203-1214.
EU, 2012. Rules of corporate governance for the European companies (European Parliament Resolution of 29 March 2012, on a regulation of corporate governance for European companies 2011/2181(INI)). Obtained in http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P7-TA-2012-0118&language=ES&ring=A7-2012-0051 (accessed 10/22/12).
Fama, E. F., 1980. Agency problems and the theory of the firm. Journal of Political Economy, 88(2), 288-307.
Fama E. F. and Jensen, M. C., 1983. Separation of ownership and control. Journal of Law and Economics, 26(2), 301-325.
Fernandez, A. I., Gomez-Anson, S. and Fernández-Méndez, C., 1998. The supervisory role of the board of directors on the managerial performance. Evidence for the case of Spain. Economic Research, 23(3), 501-516.
Ferris, S. P., Jagannathan, M. and Pritchard, A. C., 2003. Too Busy to Mind the Business? Monitoring by Directors with Multiple Board Appointments. The Journal of Finance, 58(3), 1087-1112.
Fich, E. M. and Shivdasani, A., 2006. Are Busy Boards Effective Monitors? The Journal of Finance, 61(2), 689-724.
Freeman, R. E., 1984. Strategic management: A stakeholder approach. Boston: Pitman.
Frooman, J., 1999. Stakeholder influence strategies. Academy of Management Review, 24, 191-205.
Gill, M. S., Vijay, T. S. and Jha, S., 2009. Corporate Governance Mechanisms and firm Performance: A Survey of Literature, Journal of IUP Corporate Governance, 8(1), 7-21.
Goergen, M., Manjon, M.C. and Renneboog, L., 2008. Is the German system of corporate governance converging towards the Anglo-American model? Journal of Management and Governance, 12, pp. 37–71. DOI: 10.1007/s10997-007-9040-7
Grant, R. M., 1991. The resource-based theory of competitive advantage: Implications for strategy formulation. California Management Review, 33(3), 114-135.
Guest, P. M., 2009. The impact of board size on firm performance: evidence from the UK. The European Journal of Finance, 15(4), 385-404.
Gujarati, D. N., 2003. Basic Econometric. Boston: Mcgraw-Hill.
Gutierrez, I. and Surroca, J., 2012. Revisiting corporate governance through the lens of the Spanish evidence. Journal of Management and Governance. DOI:10.1007/s10997-012-9250-5
Hu, H. W., Tam, O. K. and Tan, M. G., 2010. Internal governance mechanisms and firm performance in China. Asia Pacific Journal of Management, 27(4), 727-749.
International Corporate Governance Network (ICGN), 2014. Consulted on www.icgn.org (accesed 4/14/2014)
Jackling, B. and Johl, S., 2009. Board structure and firm performance: Evidence from India’s top companies. Corporate Governance: An International Review, 17(4), 492-509.
Jensen, M. C. and Meckling, W. H., 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Judge, W., Naoumova, Q. and Koutzevol, N., 2003. Corporate governance and firm performance in Russia: An empirical study. Journal of World Business, 38(4), 385-396.
Kaczmarek, S., Kimino, S. and Pye, A., 2011. Board task-related faultlines and firm performance: A decade of evidence. Corporate Governance: An International Review. DOI: 10.1111/j.1467-8683.2011.00895.x
Kiel, G. C. and Nicholson, G. J., 2003. Board Composition and Corporate Performance: how the Australian experience informs contrasting theories of corporate governance, Corporate Governance: An International Review, 11(3), pp. 189-205.
Kota, H. B. and Tomar, S., 2010. Corporate governance practices in Indian firms. Journal of Management and Organization, 16(2), 266-279.
Larmou, S. and Vafeas, N., 2010. The relation between board size and firm performance in firms with a history of poor operating performance. Journal of Management and Governance, 14(1), 61-85.
Lehn, K. M., Patro, S. and Zhao, M., 2009. Determinants of the size and composition of US Corporate Boards: 1935-2000. Financial Management, 38 (4), 747-780.
Lin, C.; Ma, Y. and Su, D., 2009. Corporate governance and firm efficiency: Evidence from China’s publicly listed firms. Managerial and Decision Economics, 30(3), 193.
Mak, Y. T. and Kusnadi, Y., 2005. Size really matters: Further evidence on the negative relationship between board size and firm value. Pacific-Basin Finance Journal, 13 (3), 301-318.
McIntyre, M. L., Murphy, S. A. and Mitchell, P., 2007. The top team: examining board composition and firm performance. Corporate Governance, 7(5), 547-561.
Miwa, Y. and Ramseyer, J.M., 2005. Who appoints them, what do they do? Evidence on outside directors from Japan. Journal of Economics and Management Strategy, 14(2), 299-337.
Mura, R., 2007. Firm Performance: Do Non-Executive Directors Have Minds of their Own? Evidence from UK Panel Data. Financial Management, 36(3), 81-112.
OECD, 2004. OECD Principles of Corporate Governance. Obtained in http://www.oecd.org/daf/corporateaffairs/corporategovernanceprinciples/37191543.pdf, (accessed 22/10/ 12).
O’Connell, V. and Cramer, N., 2010. The relationship between firm performance and board characteristics in Ireland. European Management Journal, 28(5), 387-399.
Palmer, D. and Barber, B. M., 2001. Challengers, elites and owning families: a social class theory of corporate acquisitions in the 1960s. Administrative Science Quarterly ,46(1), 87-120.
Pfeffer, J., 1973. Size, composition and function of hospital boards of directors: A study of organization-environment linkage. Administrative Science Quarterly, 18(3), 349-364.
Pfeffer, J. and Salancik, G. R., 1978. The external control of organizations: A Resource dependence perspective. New York: Harper & Row.
Preston, L. E., 1998. Agents, stewards and stakeholder, Academy of Management. The Academy of Management Review, 23(1), 9-13.
Raja, J. and Kumar, A., 2008. SME entrepreneurship, firm performance, and corporate governance practices in Indian service firms. Journal of Services Research, 7(2), 99-113.
Reddy, K., Locke, S. and Scrimgeour, F., 2010. The efficacy of principle-based corporate governance practices and firm financial performance: An empirical investigation. International Journal of Managerial Finance, 6(3), 190-219.
Rodríguez Fernández, M., Fernández Alonso, S. and Rodríguez Rodríguez, J., 2013. Estructura del consejo de administración y rendimiento de la empresa española cotizada. Revista Europea de Dirección y Economía de la Empresa, 22, 155-168.
Schmid, M. M. and Zimmermann, H., 2008. Should chairman and CEO be separated? Leadership structure and firm performance in Switzerland. Schmalenbach Business Review: ZFBF, 60, 182-204.
Seidl, D., Sanderson, P. and Roberts, J., 2013. Applying the ‘comply-or-explain’ principle: discursive legitimacy tactics with regard to codes of corporate governance. Journal of Management & Governance, 17, 791–826. DOI: 10.1007/s10997-011-9209-y
Soltani, B. and Maupetit, C., 2013. Importance of core values of ethics, integrity and accountability in the European corporate governance codes. Journal of Management Governance. DOI: 10.1007/s10997-013-9259-4
Spencer Stuart, 2011. Spain 2011.Index Spencer Stuart of Boards of Directors, 15th ed.
Stanwick, P. A. and Stanwick, S. D., 2010. The Relationship Between Corporate Governance and Financial Performance: An Empirical Study of Canadian Firms. The Business Review, Cambridge, 16(2), 35-41.
Steen T., 2006. The hidden meaning of codes: Corporate governance and investor rent seeking. European Business Organization Law Review, 7(4), 845-861.
Sternberg, E., 1997. The defects of stakeholder theory. Corporate Governance, 5(1), 3-10.
Tin Yan Lam, and Shu Kam Lee., 2008. CEO duality and firm performance: Evidence from Hong Kong. Corporate Governance, 8(3), 299-316.
Uadiale, O. M., 2010. The Impact of Board Structure on Corporate Financial Performance in Nigeria. International Journal of Business and Management, 5 (10), 155-166.
Yammeesri, J. and Herath, S. K., 2010. Board characteristics and corporate value: evidence from Thailand. Corporate Governance, 10 (3), 279-292.
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