Abstract
This study investigates how board size and occupational background of directors differentially influence social performance in for-profit and non-profit organizations. Using data from California hospitals, we develop a quantitative measure of social performance and provide the following empirical evidence. First, board size is negatively (positively) associated with social performance in for-profit (non-profit) hospitals. Second, the presence of government officials on the board is negatively (positively) related to social performance in for-profit (non-profit) hospitals. Third, representation of physicians on the board is positively associated with social performance in for-profit hospitals, whereas their presence is not significantly related to social performance in non-profit hospitals. Our findings highlight the different effects of governance mechanisms on social performance in for-profit and non-profit organizations.
Original language | English (US) |
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Pages (from-to) | 171-187 |
Number of pages | 17 |
Journal | Journal of Business Ethics |
Volume | 118 |
Issue number | 1 |
DOIs | |
State | Published - Nov 1 2013 |
Externally published | Yes |
Keywords
- Board size
- Governance
- Occupational background
- Ownership
- Social performance
ASJC Scopus subject areas
- Business and International Management
- General Business, Management and Accounting
- Arts and Humanities (miscellaneous)
- Economics and Econometrics
- Law