The relationship between the board of directors and the performance. Analysis of family and non family firms in Italy

This paper analyses how board composition can affect not only the financial, but also the social performance of Italian family and non-family firms. Results confirm an improvement in firm profitability when its board dimension decreased or its number of independent directors increased. As for social aspects, performance depends on the effectiveness and efficiency of the Board’s decision-making process, as well as on the corporate culture and the individual culture of directors. The role of the Board may be important in shaping corporate culture and thus the sensitivity and awareness of the corporate socio-political dimension of management, if it is acknowledged at a leadership role level.