Board Composition And Firm Performance In Spanish Non-Listed Firms

Abstract

In the context of ownership concentration, the aim of this study is to analyse the usefulness of the board of directors as an internal control mechanism and, in the case of family firms, also consider the generational effect. We examined the relation between firm performance and outside directors in SME non-listed family and non-family firms. Our findings show the existence of a negative impact of outside directors on firm performance in family firms, and the clear difference in behaviour between family firms run by the first generation and those that are run by subsequent generations.