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Seeing the big picture: Board Chair's network in corporate performance explaining

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  • Chen, Ruifan
  • Chen, Runnan
  • He, Feng

Abstract

This study investigates the role of social network in the interpretation of corporate performance from board chair's network connections perspective. We quantify external attributions through textual analysis of management earnings forecasts issued by Chinese A-share listed companies from 2008 to 2017. The results show that higher network centrality of the board chair significantly reduces a firm's tendency to attribute performance to external factors. In addition, the board chair's network helps mitigate self-serving attribution bias. This effect is achieved through understanding of the business environment, monitoring effectiveness, and corproate long-term investment. This study enriches the literature on executive networks, disclosure strategies, and behavioral biases in corporate decision-making, providing new insights to understand corporate behavior.

Suggested Citation

  • Chen, Ruifan & Chen, Runnan & He, Feng, 2025. "Seeing the big picture: Board Chair's network in corporate performance explaining," International Review of Economics & Finance, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:reveco:v:97:y:2025:i:c:s1059056024007731
    DOI: 10.1016/j.iref.2024.103781
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