Board of directors and value of Chilean companies

Felipe Muñoz Chávez, Andrea King Domínguez, Rosa Martha Ortega Martínez and Luis Améstica Rivas
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Felipe Muñoz Chávez: Universidad del Bío-Bío
Andrea King Domínguez: University of Bío-Bío
Rosa Martha Ortega Martínez: Juárez University of the State of Durango
Luis Améstica Rivas: University of Bío-Bío

Revista Tendencias, 2025, vol. 26, issue 1, 61-88

Abstract: Introduction: Boards of directors are key to organizational performance. This study analyzes the composition of boards in non-financial Chilean companies between 2019 and 2022, focusing on the number of members, female participation, and professional diversity. Objective: To assess how these characteristics impact management practices and the strategic direction of organizations. Methodology: A statistical description and multiple linear regression were used to analyze the relationship between the variables and the company's value (Price to Book, Price to Sales, and EV to EBITDA). Results: The analysis shows an average of 7.9 members per board, low female participation, and a concentration in five professional areas. The number of members is positively related to the company's value in all cases. Female participation shows a negative relationship, while professional diversity has a positive impact in some cases, although not significant in others. Additionally, company size and indebtedness also influence company value. Conclusions: The number of board members positively impacts company value, while female participation and professional diversity show a less clear influence.

Keywords: Chile; board of directors; economic evaluation; finance; corporate governance (search for similar items in EconPapers)
JEL-codes: G30 G32 G34 M21 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:col:000520:021332

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