Abstract
This study investigates the relationship between board social activity (i.e., frequency of board meetings) and firm performance in publicly traded family and non-family firms, focusing on the moderating effects of family involvement (i.e., family ownership and at least one family member on the board of directors). Our investigation is based on a database of 172 family and non-family firms listed on the Italian Stock Exchange over a 10-year period (1098 observations). The results indicate a curvilinear (inverted U-shaped) relationship between board meeting frequency and firm accounting performance. Moreover, family involvement positively moderates this curvilinear relationship, leading to an optimal level of board meetings, which is higher in firms with increasing family involvement than in other firms. Applying behavioral governance theory, we contribute to explain how boards of directors influence firm performance through the board context (i.e., family involvement) and arrangements (i.e., frequency of board meetings/social interactions), providing evidence for family firm heterogeneity.
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