Only 17.3% of Valencian companies have a board of directors, compared to the Spanish average of 20.8%.
On Tuesday 31 May, the Chair of Family Business (CEFUV) promoted by the Valencian Association of Entrepreneurs (AVE), the School of Entrepreneurs (EDEM), the Valencian Institute for the Study of Family Business (IVEFA), the Instituto de la Empresa Familiar (IEF) and the Universitat de València (UV), and sponsored by CaixaBank and Broseta, participated in the presentation of the analysis of the GECE observatory by CaixaBank and the Ivie.
This research note highlights that 62.2% of companies in the Valencia Region are controlled by a majority shareholder and are managed through personal mechanisms (sole administrator, or joint or joint administrators). Although this business model also stands out at national level, the percentage drops to 58.6% in the case of the Spanish average. In contrast to these figures, the opposite case, with a capital structure not dominated by any majority shareholder, and governed by a board of directors, accounts for 11.3% of Valencian companies (12.8% in the national total). While the characteristics of the ownership structure do not show a clear relationship with the levels of competitiveness of the company, the governance systems chosen are relevant, in that the more formalised ones (boards of directors) are associated with better economic performance of the companies.
This is one of the main conclusions provided by the new GECE Observatory Analysis, the Observatory on Corporate Governance, Strategy and Competitiveness (GECE), presented this Tuesday by CaixaBank and the Ivie (Valencian Institute of Economic Research) at ADEIT - Fundació Universitat-Empresa.
Specifically, the document, prepared by Ivie researcher Alejandro Escribá and Ivie economist Carlos Albert, also from the Ivie, concludes that companies that have a board of directors enjoy higher levels of competitiveness, can offer better salaries and have a more international profile, both in terms of exports and the creation of subsidiaries abroad. In general, these companies also tend to be larger and older.
The presentation of the report was attended by Felipe Pulido, Commercial Director of CaixaBank Companies in the Valencia Region, who highlighted "CaixaBank's commitment to the generation of knowledge to support the competitive improvement of Valencian companies". Next, Alejandro Escribá, head of the GECE Observatory at the Ivie, detailed the main conclusions of the report. This was followed by a discussion moderated by Amparo García, Director of the CaixaBank Business Centre in the Port of Valencia, with representatives of two companies with different ownership structures but with excellent levels of competitiveness at a national level in their respective sectors: Grupo Huevos Guillén, represented by its Deputy General Manager, Enrique Sanfélix, and Industrias Alegre, represented by Enrique Careaga, CEO of the company.
Both speakers explained how their boards of directors work, the processes that led to their constitution and development, the good management practices they have incorporated and the various benefits of a professionalised and efficient governance system. Finally, the event was brought to a close by the director of the Valencian Institute of Finance, Manuel Illueca, together with Alejandro Escribá, who wanted to summarise and encompass all the concepts explained by the speakers beforehand:
"The importance of a system of governance which subjects managers to greater control" - Alejandro Escribá
"The importance of a system of governance which subjects managers to greater control" - Alejandro Escribá
You can access the full press release via this link.
And, to download the full research note, click on this link.
