The impact of the diversity of the board of directors in the adoption of risk management and control practices

Authors

Keywords:

Corporate governance, Diversity, Risk control, Risk management.

Abstract

The objective of this study is to analyze the incidence of board diversity in the adoption of management practices and risk control of 236 Chilean public limited companies in the period 2015-2019. For this, a descriptive-correlational study was carried out, considering the diversity of gender, nationality, and age of the board of directors, and the degree of adoption of risk management and control practices proposed by the local regulator. Through a regression analysis between the study variables, it was shown that diversity of gender and nationality has a positive and significant impact on the adoption of risk management and control practices, but not age diversity, which does not have a significant impact on the adoption of risk management and control practices. It was concluded that the boards do not present a tendency towards heterogeneity in their conformation, being composed chiefly of male directors of Chilean nationality and in an age range between 50 and 70 years, leaving evidence of stagnation in the diversity rates of this decision-making body, as well as the low adoption of corporate practices related to risk control and management in companies in the Chilean stock market.

Author Biographies

Pablo Esteban Godoy Ávila, Universidad de Talca

Management Control Engineer and Public Accountant and Auditor. Research assistant at the Accounting Research and Studies Center of the Faculty of Economics and Business of the University of Talca.

Pamela Alejandra Vera Ibar, Universidad de Talca

Management Control Engineer and Public Accountant and Auditor. Research assistant at the Accounting Research and Studies Center of the Faculty of Economics and Business of the University of Talca.

Felipe Eduardo Arenas Torres, Universidad de Talca

Doctor in Law and Business Administration from the University of Lleida, Spain. Master in Accounting and Auditing from the University of Santiago de Chile. Academic and Researcher at the Faculty of Economics and Business, and member of the Center for Research and Accounting Studies at the University of Talca, Chile. Director of the Master of Business Administration (MBA) at the University of Talca. His main publications focus on the study of diversity in the composition of the board of directors and the adoption of corporate governance practices in public interest companies. Finally, the academic is a specialist advisor in corporate governance. Line of interest Corporate Governments and Audit Procedures.

Valentín Adolfo Santander Ramírez, Universidad de Talca

Doctor in Human and Social Sciences from the University of Almería, Spain. Master in Business Management and Organization (International Business) from the University of Lleida, Spain. Master in General Business Management from IEDE, Chile. Academic and Researcher at the Faculty of Economics and Business, and Director of the Center for Research and Accounting Studies at the University of Talca, Chile. Director of the Audit and Management Control Engineering School. Line of interest Management of organizations, Interculturality in the business field, Public Accountant Education.

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Published

2024-06-10

How to Cite

Godoy Ávila, P. E., Vera Ibar, P. A., Arenas Torres, F. E., & Santander Ramírez, V. A. (2024). The impact of the diversity of the board of directors in the adoption of risk management and control practices. Scientific Journal Visión De Futuro, 28(2). Retrieved from https://visiondefuturo.fce.unam.edu.ar/index.php/visiondefuturo/article/view/841

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