LONG-TERM DECISION-MAKING, THE COMPOSITION OF BOARDS OF DIRECTORS: A MULTIVARIATE APPROACH

Abstract

Companies must constantly adapt to new market requirements. Transformations due to various economic causes create a complex environment. Furthermore, it is known from the literature that economic markets , such as Ecuador, are subject to a low reputation for decisions to protect minority investments. These factors alter investors' perceptions of Ecuador, as they encourage the beginning of capital expropriation. This negative effect delays the growth of the country's capital market. This study performs a multivariate exploration of the decisions made by companies in the composition of their boards of directors. Based on the results, which are relevant to capital creation and boards, it was determined that there is a high positive relationship between the presence of men on the board of directors and the creation of boards. A positive relationship is also established with the presence of women on the board. Despite this, a low correlation is evident with the establishment of companies on the board. This trend persists across different management areas.