Determinants for the composition of the board of directors in SMEs: evidence from Brazil

The objective of this study was to analyse the determinants for the composition of board of directors of publicly traded SMEs in ABC region of Metropolitan Sao Paulo. The study is of great relevance in Brazil in that, it contributes to solve problem of lack of publications. Similar studies analysed the sizes and types of boards, financial performance, independence and none of them focused on composition of the boards in SMEs. In light of this, we question which factors were determinant for the composition of the board of directors of private publicly traded SMEs? We surveyed 60 enterprises from the industrial association of ABC region of which 20 were our respondents. Our findings make us conclude that the main determinants for the composition of the board of directors in private publicly traded SMEs in the ABC region of Metropolitan Sao Paulo are the CEOs and life cycle of the enterprise.