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Analysis of the Determinants of the Effectiveness of the Board of Directors in Family Businesses in Cameroon

DOI: 10.4236/ojbm.2022.105134, PP. 2704-2728

Keywords: Board of Directors, Governance, Family Business, Public Limited Company

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Abstract:

The composition of the Board of Directors is commonly presented as an understandable variable for its effectiveness. However, the work that examined the relationship between the composition and effectiveness of the Board is not characterized, as they require about whether or not certain categories of directors (internal, external, independent) are relevant and the related empirical results are mixed. This work examines the relationship between the characteristics of the board of directors and its effectiveness in a type of business that is very common in the world, respecting the family business. Thus, the problem that this study tries to solve is to identify the characteristics of the board of directors that can contribute to its effectiveness in Cameroonian family businesses. We found that the size of the Board, the presence of external directors, and the cumulative management and control functions appear to have an impact on the effectiveness of the Board.

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