Does cultural economics affect country’s competitiveness?

Abstract

This study delves into the intricate dynamics of corporate governance within private Small and Medium Enterprises (SMEs), focusing on the pivotal roles played by outside directors, family control, and board meeting frequency. The research investigates three key hypotheses: firstly, positing a positive and indirect correlation between the participation of outside directors and board service engagement, with information disclosure acting as a mediator; secondly, exploring the negative moderating effect of family control on the link between outside directors' attendance, board service engagement, and information disclosure; and finally, examining the positive moderating role of board meeting frequency in the association between outside directors' presence, information disclosure, and board service engagement. Through these analyses, the study aims to provide valuable insights into the nuanced governance dynamics within private SMEs, contributing to a deeper understanding of the factors influencing board engagement and transparency in this critical sector. This research investigates the multifaceted dynamics of corporate governance in private Small and Medium Enterprises (SMEs), with a specific focus on the influential factors of outside directors, family control, and board meeting frequency. Three hypotheses are examined: firstly, the study explores the positive and indirect correlation between the participation of outside directors and board service engagement, mediated by information disclosure. Secondly, it examines the negative moderating effect of family control on the link between outside directors' attendance, board service engagement, and information disclosure. Lastly, the study investigates the positive moderating role of board meeting frequency in the association between outside directors' presence, information disclosure, and board service engagement. Through these analyses, the research aims to enhance our understanding of the nuanced governance dynamics within private SMEs.

Keyword : Corporate Governance, Small and Medium Enterprises (SMEs), Outside Directors, Family Control, Board Meeting Frequency, Board Service Engagement, Information Disclosure, Governance Dynamics.