EconPapers    
Economics at your fingertips  
 

Board Capital Diversity and Firm Value: Evidence from Latin-America

Cristian Pinto-Gutiérrez (), Carlos Pombo () and Jairo Villamil-Díaz ()

Documentos CEDE from Universidad de los Andes - CEDE

Abstract: This paper analyzes the effects of diversity of boards of directors’ human and relational capital on the performance of firms in Latin America. Using a large database of 442 firms in 6 countries (Argentina, Brazil, Chile, Colombia, Mexico, and Peru) from 2001 to 2012, we construct a Board Capital Diversity Index that includes educational backgrounds and work experiences for each board member. We find a positive relationship between board capital diversity and firm performance, as measured by Tobin’s Q. In particular, we find that both human capital diversity (educational background) and relational capital diversity (experience in the private and public sector) increase the value of the company. Our results confirm the resource dependence theory, where the board, in addition to its monitoring role, is seen as a provider of resources.

Keywords: Corporate Governance; Director Heterogeneity; Firm Performance; Emerging Markets. (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
Date: 2018-11-26
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://economia.uniandes.edu.co/publicaciones/dcede2018-61.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:col:000089:016972

Access Statistics for this paper

More papers in Documentos CEDE from Universidad de los Andes - CEDE
Bibliographic data for series maintained by Universidad De Los Andes-Cede ().

 
Page updated 2019-04-11
Handle: RePEc:col:000089:016972