Title: Board of directors and firm performance: a dynamic approach

Authors: Isabel Acero; Nuria Alcalde

Addresses: Department of Business Administration, Faculty of Economy and Business, University of Zaragoza, Campus Río Ebro, C/ María de Luna, s/n, 50.018 Zaragoza, Spain ' Department of Business Administration, Faculty of Economy and Business, University of Zaragoza, Campus Río Ebro, C/ María de Luna, s/n, 50.018 Zaragoza, Spain

Abstract: This paper analyses how board structure influences firm performance, considering the effect of dynamic endogeneity. For a sample of listed Spanish firms, the study did not find that board structure had any effect on the value of the firm, when controlling for dynamic endogeneity. The research results show the need to use appropriate econometric techniques (dynamic models) to avoid obtaining incorrect or biased results. They also show that each firm must determine the size and structure of the board given its own advice and control needs.

Keywords: board of directors; firm performance; dynamic endogeneity; generalised method of moments; GMM; Spain.

DOI: 10.1504/IJBGE.2026.150422

International Journal of Business Governance and Ethics, 2026 Vol.20 No.1, pp.48 - 67

Received: 16 Jan 2023
Accepted: 10 Oct 2023
Published online: 13 Dec 2025 *

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