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Board of directors and value of Chilean companies

Author

Listed:
  • Muñoz Chávez, Felipe

    (Universidad del Bío-Bío)

  • King Domínguez, Andrea

    (University of Bío-Bío)

  • Ortega Martínez, Rosa Martha

    (Juárez University of the State of Durango)

  • Améstica Rivas, Luis

    (University of Bío-Bío)

Abstract

Introduction: Boards of directors are key to organizational performance. This study analyzes the composition of boards in non-financial Chilean companies between 2019 and 2022, focusing on the number of members, female participation, and professional diversity. Objective: To assess how these characteristics impact management practices and the strategic direction of organizations. Methodology: A statistical description and multiple linear regression were used to analyze the relationship between the variables and the company's value (Price to Book, Price to Sales, and EV to EBITDA). Results: The analysis shows an average of 7.9 members per board, low female participation, and a concentration in five professional areas. The number of members is positively related to the company's value in all cases. Female participation shows a negative relationship, while professional diversity has a positive impact in some cases, although not significant in others. Additionally, company size and indebtedness also influence company value. Conclusions: The number of board members positively impacts company value, while female participation and professional diversity show a less clear influence.

Suggested Citation

  • Muñoz Chávez, Felipe & King Domínguez, Andrea & Ortega Martínez, Rosa Martha & Améstica Rivas, Luis, 2025. "Board of directors and value of Chilean companies," Revista Tendencias, Universidad de Narino, vol. 26(1), pages 61-88, January.
    • Handle: RePEc:col:000520:021332
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    References listed on IDEAS

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    More about this item

    Keywords

    Chile; board of directors; economic evaluation; finance; corporate governance;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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