Beyond the disciplinary role of governancehow boards and donors add value to Spanish founda-tions
- Andrés Alonso, Pablo de
- Azofra Palenzuela, Valentín
- Romero Merino, María Elena
ISSN: 1988-8767
Any de publicació: 2008
Número: 365
Tipus: Document de treball
Altres publicacions en: Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]
Resum
Foundations play a key role in the development of modern societies, helping to funnel private wealth to social services and educational and research activities. Using a sample of Spanish foundations, we present evidence on the effect of the board composition and institutional donors on foundations' organizational efficiency. We show that board size and independence do not directly impact the entity’s efficiency. Instead, the heterogeneity of knowledge inside the boardroom and the proactive character of trustees have a positive influence on resource allocation. We confirm the benefits of a private institutional donor who effectively monitors managerial decisions.