Three essays on board composition

Tesis por compendio de publicacionesThe thesis consists of three articles concerning the composition of board of directors in Italy. The first article analyzes the effects of board composition on the behaviour of a sample of 114 Italian local public utilities, for which information about 1630 directors during 1994–2004 has been collected. During this period, the deregulation process inspired institutional interventions that forced utilities, traditionally owned by local municipalities, to change their juridical form and ownership structure, thereby facilitating the entrance of private investors. The main findings indicate that politically connected directors, who dominate boards of directors in Italian public utilities, exert a positive and significant effect on employment, and have a negative impact on performance. The second article investigates the determinants of board compensation for the same sample of Italian local public utilities observed from 1994 through 2004. Average board pay is found to be positively related to firm dimension and negatively related to board size. The public or private nature of the major shareholder does not influence board compensation but the juridical form does. Finally, while the proportion of politically connected directors is found to negatively influence the level of per capita compensation, the impact of firm performance is uncertain. The third paper deals with diversity as a key factor to improve the board of directors’ decision process in family firms. The empirical literature about board diversity points at the positive impact of diversity on board functioning and firm performance. The empirical analysis is based on a newly collected panel of 327 Italian family firms including data on their board of directors during the period 2003-2007. We find that firm performance is positively related to a global, statistical measure of board diversity. In particular, the presence of gender diversity and a good mix of executive and non-executive managers show the strongest econometric significance, suggesting that diversity is an important factor to improve board decisions.Programa Oficial de Posgrado en Investigación en Economía de la Empresa y Métodos CuantitativosPresidente: Pablo de Andrés Alonso; Secretario: Marco Trombetta; Vocal: Josep Tribó Gin

Board Composition, Political Connections and Performance in State-Owned Enterprises

This paper analyses the effects of board composition on the behaviour and performance of a sample of 114 Italian local public utilities, for which information about 1630 directors during 1994-2004 has been collected. This period is particularly interesting because of the legal changes that forced many firms to alter their juridical form and allowed the entrance of private investors. We investigate whether board size and/or board composition do affect decisions about employment and how they ultimately impact on performance. Our main findings indicate that politically connected directors, representing the state or the local municipality, dominate boards of directors in the Italian public utilities in the period under investigation. Politically connected directors exert a positive and significant effect on employment, while they impact negatively on performance.board size; board composition; politicians; local public utilities

The determinants of board compensation in SOEs. An application to Italian local public utilities

This paper investigates the determinants of board compensation for a sample of Italian State Owned Enterprises (SOEs). To that purpose, we use a newly collected panel data of 106 local public utilities observed form 1994 through 2004, which includes detailed information on the boards of directors. During this period, the deregulation process inspired institutional interventions that forced utilities, traditionally owned by local municipalities, to change their juridical form and ownership structure, thereby facilitating the entrance of private investors. The corporate governance literature shows that such changes may exacerbate the agency conflicts between shareholders, top executives and the board. However, board compensation could reduce the agency costs by aligning the incentives of managers with the interests of shareholders. This paper addresses this issue by investigating the impact that board composition, firm characteristics and performance have on board compensation. We find that the average board pay is negatively related to board size and positively related to firm dimension. The public or private nature of the major shareholder does not influence board compensation but the juridical form does. Finally, while the proportion of politically connected directors is found to negatively influence the level of per capita compensation, the impact of firm performance is uncertain.board compensation, board composition, politicians, local public utilities

The determinants of board compensation in SOEs: An application to Italian public utilities

This paper investigates the determinants of board compensation for a sample of Italian State Owned Enterprises (SOEs). To that purpose, we use a newly collected panel data of 106 local public utilities observed for the years 1994-2004, which includes detailed information on the boards of directors. During this period, the deregulation process inspired institutional interventions that forced utilities, traditionally owned by local municipalities, to change their juridical form and ownership structure, thereby facilitating the entrance of private investors. The corporate governance literature shows that such changes may exacerbate the agency conflicts between shareholders, top executives and the board. However, board compensation could reduce the agency costs by aligning the incentives of managers with the interests of shareholders. This paper addresses this issue by investigating the impact that board composition, firm characteristics and performance have on board compensation. We find that the average board pay is negatively related to board size and positively related to firm dimension. The public or private nature of the major shareholder does not influence board compensation but the juridical form does. Finally, while the proportion of politically connected directors is found to negatively influence the level of per capita compensation, the impact of firm performance is uncertain.board compensation, board composition, politicians, local public utilities

Value co-creation in the video game industry

Purpose. The process of value creation is rapidly shifting from a product- and firm-centric view to personalized consumer experiences. Networked and active consumers are increasingly co-creating value with the firm. This paper aims at contributing to the evidence on unpaid competing complementors and on network effects by asking how a form of creation that is user-driven and not motivated by sales incentives, impacts on producers\u2019 sales. The video game industry, where the so-called \u201cmodders\u201d provide free contents (\u201cmods\u201d) that improve the video game experience, provides an excellent field of study. Methodology. The video games demand function and the supply of new mods, in the retail video game market, are modelled. A system of equations is estimated by applying an instrumental-variables approach to account for possible endogeneity biases and uncover causal relationship. Findings. The creation of new mods increases video game retail sales. The more popular is a video game title, the higher are the sales. The video game demand elasticity is attenuated by the continuous creation of new mods. Practical implications This paper shows that direct and indirect network effects between video games and mods take place even with unpaid competing complementors and that (even) traditional distribution outlets can benefit from them. Originality/value. The paper quantifies the effect that the creation of mods exerts on sales and on price elasticity. Weekly (instead of monthly) time periods provide a period short enough to capture the short development cycles of mods and small and rapid responses of user demand

Board diversity in family firms

The paper deals with diversity as a key factor to improve the board of directors’ decision process in family firms. The empirical literature about board diversity points at the positive impact of diversity on board functioning and firm performance. The paper uses a statistical diversity index to capture the heterogeneity of board of directors and put it in relation with firm performance, as measured by firm profitability. The empirical analysis is based on a newly collected panel of 327 family firms including data on their board of directors during the period 2003-2007. We find that firm performance is positively related to a global measure of board diversity. In particular, the presence of gender diversity and a good mix of executive and non-executive managers show the strongest econometric significance, suggesting that diversity is an important factor to improve board decisions

The determinants of board compensation in SOEs: an application to Italian local public utilities

This article investigates the determinants of board compensation for a sample of Italian state owned enterprises (SOEs). To that purpose, we use newly collected panel data of 106 local public utilities observed from 1994 through 2004, which includes detailed information on the boards of directors. During this period, the deregulation process inspired institutional interventions that forced utilities, traditionally owned by local municipalities, to change their juridical form and ownership structure, thereby facilitating the entrance of private investors. The corporate governance literature shows that such changes may exacerbate the agency conflicts between shareholders, top executives and the board. However, board compensation could reduce the agency costs by aligning the incentives of managers with the interests of shareholders. This article addresses this issue by investigating the impact that board composition,firm characteristics and performance have on board compensation. Wefind that the average board pay is positively related to firm dimension and negatively related to board size. The public or private nature of the major shareholder does not influence board compensation but the juridical form does. Finally, while the proportion of politically connected directors is found to negatively influence the level of per capita compensation, the impact offirm performance is uncertain.Publicad

Extra-projected implants as an alternative surgical model for breast reconstruction. Implantation strategy and early results.

Abstract The present study reports on patients who underwent breast reconstructions with extra-projection implants. Two-hundred and thirty-four women were treated for 238 breast reconstructions irrespectively of breast shape and size. In this series we aimed to reconstruct for all women a bilateral cosmetic medium-size breast (between 400 and 500 cc), highly projected, with a little to moderate ptosis rather then a ptotic one exactly matching the contra-lateral. This is demonstrated by volume of implants that ranged from 397 cc for ladies with small breast who received an augmentation, to 533 cc for those who side required a reduction surgery. Eighty-six percent of patients received contra-lateral procedures. Complication rate was 8.4% and 66% of reconstructions were rated as good in the patients' opinion. Extra-projection implants, coupled with contra-lateral breast surgery, provide a good aesthetic outcome and avoid myocutaneous flaps only on the basis of breast size and shape