Board of director attributes: effects on financial performance in SMEs

This paper analyses the relationship between board of director (BoD) attributes and financial performance in small medium-sized enterprises (SMEs). Although SMEs are backbone world economies, most studies on this focused large companies did not consider many typical or recommended processes activities carried out by SME BoDs. We monitored a set variables related to BoD such as composition, characteristics, structure for 184 Italian along with their financials over 4-year period (2014–2017). controlled enterprise-specific characteristics annual sales growth, assets value, turnover, leverage, company size (employees), firm age, generational changes, ownership familiness. Using an ordinary least squares (OLS) regression model time-period industry-fixed effects data, we found significant correlation certain performance. In particular, our model, members’ adequate competences skills, presence committees individual delegates within BoD, timely-furnished documentation before meetings, monitoring conflicts interest members, risk analysis management, member performance-based remuneration, disclosure stakeholders influenced ROA ratio, used proxy Our findings support importance its influencing SMEs. BoDs proven unique resources companies.