The relationship between women’s presence in corporate positions and firm performance: The case of Colombia

Purpose: The purpose of this paper is to analyze, in the Colombian developing context, the relationship between the presence of women in corporate positions and the financial performance of the company and to know if there are differences between family and non-family firms. Design/methodology/approach: Building on the contingency theory of leadership, which emphasizes that leader’s personality and the situation in which that leader operates influences corporate decision-making, the authors use panel data models on a sample of 54 Colombian public businesses for the period 2008-2015 to test the proposed hypotheses on the relationship between women´s presence in corporate governance positions and financial performance, as well as the difference between family and non-family firms. Findings: The results support that women´s presence in corporate governance positions is positively associated with firm performance. More concretely, the authors find a relationship between women at the top corporate governance structure (as part of the board of directors, top management team and chief executive officer) and firm profitability. Results also indicate that family business, as a type of organization, (negatively) moderates the positive relationship between female participation in top executive positions (board and top executive team) and firm performance. Research limitations/implications: First, this study is limited to women in corporate positions in large companies listed on the Colombia Stock Exchange, and thus, generalizability for smaller entities may be limited. Second, data limitations do not allow us to investigate ways in which women’s presence in corporate governance structures contributes to improve firm goals. Practical implications: The authors provide support to the hypothesis that positively relates women’s presence in corporate governance positions and firm performance for the case of Colombia. This serves as a guidance to Colombian regulators, corporate decision-makers and policy-makers to promote the inclusion of women in top hierarchical structures through either mandatory laws or recommendation. Originality/value: Few studies have addressed the women´s presence in corporate governance positions and contribution to firm performance in developing economies. This study contributes to better understand how women impact performance in contexts where women are underrepresented in corporate governance structure and where there are no laws that pressure firms to appoint women in corporate governance positions. © 2018, Emerald Publishing Limited

Las buenas prácticas de gobierno corporativo en las empresas familiares y su impacto en la rentabilidad y la riqueza socioemocional 

Las empresas familiares (EF) son la forma más predominante de organización empresarial en todo el mundo, y contribuyen ampliamente a la creación de riqueza mundial (IFERA, 2003). Las investigaciones sobre la EF son impulsadas por la creencia de que la participación familiar en las empresas influye significativamente en los procesos de organización y de política corporativa, lo que hace a las EF teóricamente distintas de sus contrapartes no familiares (Chrisman et al., 2005; Chua et al., 1999). Las EF en la mayoría de los países del mundo juegan un papel fundamental en el desarrollo económico y social (Shanker & Astrachan, 1996; Gersick et al., 1997; Astrachan & Shanker, 2003). En el contexto colombiano, las EF representan el 70% de las empresas del país (Superintendencia de Sociedades, 2006), aportan el 70 % de los empleos de las empresas del sector productivo y contribuyen con más del 50% del Producto Interno Bruto (PIB) (Cala, 2005).Family businesses (FFs) are the most predominant form of business organization in the world, and contribute greatly to the creation of global wealth (IFERA, 2003). Research on PE is driven by the belief that family participation in companies significantly influences corporate organization and policy processes, which makes FEs theoretically distinct from their non-family counterparts (Chrisman et al., 2005 ; Chua et al., 1999). EFs in most countries of the world play a fundamental role in economic and social development (Shanker & Astrachan, 1996, Gersick et al., 1997, Astrachan & Shanker, 2003). In the Colombian context, the EFs represent 70% of the companies of the country (Superintendency of Companies, 2006), contribute 70% of the jobs of the companies of the productive sector and contribute with more than 50% of the Gross Domestic Product (GDP) ) (Cala, 2005)

THE PRESENCE OF FAMILY MEMBERS IN THE OWNERSHIP AND MANAGEMENT OF COMPANIES AND ITS IMPACT ON PROFITABILITY: A COLOMBIAN CASE

Este estudio examina si la presencia de la familia en la propiedad de la empresa y la participación activa de los miembros de la familia en la gestión o gobierno de la empresa influyen, individual o colectivamente, sobre la rentabilidad. Mediante datos de 1038 empresas colombianas del periodo 2008-2010, este estudio no encontró una relación lineal entre la presencia de la familia en la propiedad con la rentabilidad de la empresa. Sin embargo, se logró comprobar que la relación entre la concentración de la propiedad familiar y la rentabilidad sigue una forma parabólica. Por otra parte, la presencia de los miembros de la familia en la gestión tiene un efecto positivo y significativo con el nivel de rentabilidad. Los resultados sugieren que, a partir de una mayor concentración de la propiedad familiar, la rentabilidad de la empresa se incrementa, y la participación activa de los miembros de la familia en la gestión está positivamente relacionada con la rentabilidad.This study investigates whether the presence of family members in the ownership, and active participation in the management or governance of a company influence either individually or collectively on its profitability. Using data obtained from 1038 Colombian companies during 2008- 2010 this study did not find a linear relationship between the presence of family members and company´s profitability. However, it found that the relationship between family ownership and profitability does follow a parabolic function. On another hand, presence of family members in management has a significant and positive effect on the profitability level. Results show that the greater the ownership by family members, the greater the profitability, and that active participation of family members in management is also positively related to profitability

A presença da família na propriedade e a gestão e seu impacto na rentabilidade da empresa. Caso Espanha

El presente artículo de investigación examina la influencia de la familia en la rentabilidad de las empresas familiares, a través de la presencia en la propiedad y la participación en la gestión de los miembros de la misma. Para ello, se utilizan los datos de 462 empresas familiares manufactureras españolas no cotizadas en el 2008. Los resultados sugieren que a partir de una mayor concentración de la propiedad y la participación activa de los miembros de la familia en la gestión se favorece la rentabilidad de la empresa.The following research article examines the influence of family in business profitability through their presence in the property and their participation in management. Using the data of 462 low-valued Spanish manufacturing family companies in 2008, results suggest that based on a higher concentration of ownership and active participation of family members in management, is related to improvement in company’s profitability.The following research article examines the influence of family in business profitability through their presence in the property and their participation in management. Using the data of 462 low-valued Spanish manufacturing family companies in 2008, results suggest that based on a higher concentration of ownership and active participation of family members in management, is related to improvement in company’s profitabilit

Corporate governance practices in the family and ownership dimensions its impact on performance and socioemotional wealth

This paper analyzes the governance practices in the dimension of the family and ownership, and its impact in the financial and family performance. From an empirical perspective, we provide a exploratory evidence on how the governance practice in the structures of governance in the family and ownership, impacts in the financial results and the socioemotional wealth of the family.The results show that the implementation of corporate governance practices in the family and ownership dimensions is not a reliable indicator of a direct relationship with business performance. In addition, we found strong tendencies to preserve the family’s socioemotional wealth. Furthermore, unity, honesty, transparency and amity are factors boosting both family and business success.This study has some limitations, the qualitative method used, such as the case study, allows an analytic exploration of the findings. However, it would be suitable further future quantitive approaches to generalize our results and extract more objective conclusion

Junta Directiva en la empresa familiar y su impacto en la riqueza socioemocional

This study seeks to determine the impact of the implementation of good corporate governance practices on the family business Board of Directors, observing the impact on the family socioemotional wealth. Using four cases study from family businesses in Colombia-South America, the results show that the implementations of corporate governance practices in the Board of Directors have strong tendencies to preserve the family's socioemotional wealth. Furthermore, unity, honesty, transparency and amity are factors boosting both family and business success.Este estudio busca determinar el impacto de la implementación de las buenas prácticas de gobierno corporativo en la Junta Directiva de las empresas familiares, observando el impacto sobre la riqueza socio-emocional de la familia. El uso de cuatro casos de estudio de empresas familiares en Colombia, Sur América, los resultados muestran que las implementaciones de prácticas de gobierno corporativo en la Junta Directiva tienen fuertes tendencias en preservar la riqueza socio-emocional de la familia. Por otra parte, la unidad, la honestidad, la transparencia y la amistad son factores que influyen tanto el éxito de la familia y los negocio

Effect of the Board of Directors on Firm Performance

This paper aims to study the relationship between three characteristics of the Board of Directors (Board Size, Independent Members, and Number of Meetings) and performance (ROA, ROE) in Colombian firms during the 2008-2014 period. The analysis was performed using regression models in a balanced data panel that considered random effects. The results show that BD optimal size for the Colombian case is between 6 and 10 members; and there is no evidence to affirm that the relationship between the characteristics of the studied BD and economic performance is significant

Regional variations of the impact of role models and fear of failure on entrepreneurship amongst the youth

This paper examines the joint influence of two individual level factors on entrepreneurship amongst youth residing in the rural regions. Using data from an adult population survey (APS), our empirical results suggest that although the youth in rural regions are equally likely to be positively influenced by entrepreneurial role models, rural youths are more likely to refrain from entrepreneurship because of the greater level of fear of failure compared to urabn youths. We suggest ways how by understanding differences in the influence of entrepreneurial role models and fear of business failure policy makers can design locally relevant entrepreneurship policies. By using a more fine grained analysis in the form of the moderating effect of two important individual level factors, our study contributes to a better understanding of the barriers to entrepreneurship in lagging (rural) regions at the country leve