What is it about?
The factor of Brazil being an emerging country which lacks a strict legal system and control factors against corruption in these environments and the public sectors emphasizes the importance of applying the best corporate governance practice code in the main developed countries, reflecting the need for effective supervisory bodies that contribute to better financial performance of companies.
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Why is it important?
The results were statistically significant for the board’s independence variables, which confirm the theory that the presence of independents as members of the board positively influences financial management and the company that holds the executive member and chairman of the board positions has a negative effect. The size of the board did not present statistical significance.
Perspectives
We find a significant relationship between the independence of the board of directors and the performance of firms, albeit the opposite direction of the hypothesis, suggesting that the companies with the largest number of independent members on the board have, on average, higher performance. These results are associated with some indeterminacy in the literature on the effect of the independence of boards of directors on company performance
MSc. Ruan Carlos dos Santos
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This page is a summary of: BOARD OF DIRECTORS: THE PERSPECTIVE OF INDEPENDENTS IN THE PERFORMANCE OF PRIVATE ORGANIZATIONS? EVIDENCES IN BRAZIL, RAM Revista de Administração Mackenzie, September 2018, FapUNIFESP (SciELO),
DOI: 10.1590/1678-6971/eramf180003.
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