Politicians in disguise and financial experts on the board: evidence from Spanish cajas

Pablo de Andres ^[2] ; Inigo Garcia-Rodriguez ^[1] ; M. Elena Romero-Merino ^[1] ; Marcos Santamaria-Mariscal ^[1]
1. [1] Universidad de Burgos
  
  Universidad de Burgos
  
  Burgos, España
2. [2] University of Madrid, Madrid, Spain.
Localización: Business Research Quarterly, ISSN 2340-9444, ISSN-e 2340-9436, Vol. 24, Nº. 2, 2021, págs. 174-191
Idioma: inglés
Enlaces
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Resumen
- This study offers insight into the role of board politicization on the Spanish cajas’ performance from a dual perspective. First, we analyze the effect of a new kind of political directors who occupy board seats as representatives of stakeholders outside the public administrations while maintaining a political affiliation. We call these “hidden” political directors as politicians in disguise. Second, we analyze how political interests can prevent directors with financial expertise from applying their knowledge to improve cajas’ performance. Using a sample of hand-collected data from 45 Spanish cajas, we find that politicians in disguise destroy value in the caja and that politically motivated financial experts on the board do not benefit cajas’ performance.