COMPOSITION OF THE BOARDS OF DIRECTORS, CORPORATE SOCIAL NETWORKS, AND INVESTMENT EFFICIENCY
DOI:
https://doi.org/10.4270/ruc.2022106Keywords:
Investment Efficiency, Administrative Council, Corporate Social NetworksAbstract
This research aims to analyze the relationship between the composition of boards of directors and the formation of corporate social networks with the efficiency of investments in publicly traded non-financial Brazilian companies listed on Brazil, Bolsa, Balcão (B3) in the period between 2010 and 2020. We extract the survey data from the Economática database and the reference forms of the companies available on the Brazilian Securities Commission (CVM) website. The results showed that the proportion of independent members, financial expertise, the size of the boards, and the formation of corporate social networks contribute to companies not deviating from the ideal level of investments, thus improving the efficiency in the application of resources. However, the duality of the CEO increases the deviation from the ideal level of investments. The proportion of women on the boards and the appointment of members by the controllers presented dubious results, therefore, inconclusive. In practice, the results add to the literature dealing with the implications of the composition of boards of directors and present new evidence of the factors that explain the efficiency of investments. The research may interest investors in general since the efficiency of investments is a fundamental factor for companies' success (failure). Thus economic agents must take into account and consider the importance of how boards of directors have formed as well as the existence of relationships with the external environment through corporate social networks.
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2023-04-17
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Dos Santos, J. E. (2023). COMPOSITION OF THE BOARDS OF DIRECTORS, CORPORATE SOCIAL NETWORKS, AND INVESTMENT EFFICIENCY. Revista Universo Contábil, 18, e2022106. https://doi.org/10.4270/ruc.2022106
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