Corporate Governance in Portugal

Abstract

This study provides a literature review of the research on the corporate governance mechanisms of Portuguese firms. Based on a sample of 47 articles published, between 2004 and 2019, it is documented that research is predominantly focused on corporate governance mechanisms as determinants of the performance on non-financial listed firms. Literature reports, in its majority, that board size decreases firm performance while CEO (Chief Executive Officer) non-duality promotes it; board size, board independence, and CEO non-duality improve the level of firms' information disclosure; CEO age is positively associated with an increase of CEO pay but CEO duality has an opposite effect; board independence increases firm risk-taking. These results should be of interest to national authorities in the development of future regulation related to firms' corporate governance and to national and international investors that intend to invest in Portuguese companies.