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Correlates of board empowerment in small companies

Gabrielsson, Jonas LU (2007) In Entrepreneurship Theory and Practice 31(5). p.687-711
Abstract
This study seeks to advance the understanding of board empowerment in small companies. Predictions based on agency and resource dependency theories were used to examine how contingency factors correlate with board empowerment, in this study conceptualized as a larger number of board members, a higher representation of outside directors, and separate CEO and board chair positions. Statistical analyses on a sample of 135 small companies gave ample support for the agency-theoretic prediction that board empowerment in small companies is a response to satisfy the demands from owners not directly involved in managing the company. Other factors influencing board empowerment were younger CEOs, high degree of exports, and past poor company... (More)
This study seeks to advance the understanding of board empowerment in small companies. Predictions based on agency and resource dependency theories were used to examine how contingency factors correlate with board empowerment, in this study conceptualized as a larger number of board members, a higher representation of outside directors, and separate CEO and board chair positions. Statistical analyses on a sample of 135 small companies gave ample support for the agency-theoretic prediction that board empowerment in small companies is a response to satisfy the demands from owners not directly involved in managing the company. Other factors influencing board empowerment were younger CEOs, high degree of exports, and past poor company performance. The influence of these contingency factors, however, was not as strong and extensive as the presence of outside owners. The article ends with a discussion of the findings and their implications for understanding boards and governance in small companies. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Entrepreneurship Theory and Practice
volume
31
issue
5
pages
687 - 711
publisher
Wiley-Blackwell
external identifiers
  • wos:000248962400002
  • scopus:34548152128
ISSN
1042-2587
DOI
10.1111/j.1540-6520.2007.00195.x
language
English
LU publication?
yes
id
ad4897e3-cf07-4a21-9ccc-9740cc52f05d (old id 686692)
date added to LUP
2007-12-07 11:45:26
date last changed
2017-11-12 03:55:42
@article{ad4897e3-cf07-4a21-9ccc-9740cc52f05d,
  abstract     = {This study seeks to advance the understanding of board empowerment in small companies. Predictions based on agency and resource dependency theories were used to examine how contingency factors correlate with board empowerment, in this study conceptualized as a larger number of board members, a higher representation of outside directors, and separate CEO and board chair positions. Statistical analyses on a sample of 135 small companies gave ample support for the agency-theoretic prediction that board empowerment in small companies is a response to satisfy the demands from owners not directly involved in managing the company. Other factors influencing board empowerment were younger CEOs, high degree of exports, and past poor company performance. The influence of these contingency factors, however, was not as strong and extensive as the presence of outside owners. The article ends with a discussion of the findings and their implications for understanding boards and governance in small companies.},
  author       = {Gabrielsson, Jonas},
  issn         = {1042-2587},
  language     = {eng},
  number       = {5},
  pages        = {687--711},
  publisher    = {Wiley-Blackwell},
  series       = {Entrepreneurship Theory and Practice},
  title        = {Correlates of board empowerment in small companies},
  url          = {http://dx.doi.org/10.1111/j.1540-6520.2007.00195.x},
  volume       = {31},
  year         = {2007},
}