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Disentangling Director Attributes: Human Capital versus Social Capital of Directors

Author

Listed:
  • Angela Andersen

    (Deloitte New Zealand, Rotorua 3010, New Zealand
    The views expressed in this paper are my own and do not necessarily reflect the views of my employer, Deloitte.)

  • Alexandre Garel

    (Finance Department, Audencia Business School, 44300 Nantes, France)

  • Aaron Gilbert

    (Finance Department, Faculty of Business, Economics and Law, Auckland University of Technology, Auckland 1010, New Zealand)

  • Alireza Tourani-Rad

    (Finance Department, Faculty of Business, Economics and Law, Auckland University of Technology, Auckland 1010, New Zealand)

Abstract

This study seeks to disentangle the human capital and the social capital of directors to improve our understanding of the value that directors bring to their boardroom. Employing social network analysis (SNA) to measure the social capital of directors and using a unique and comprehensive sample of New Zealand publicly listed firms over the period of 2000–2015, we find a positive and significant relationship between the human capital and the social capital of directors, where the human capital appears to predict changes in social capital. We contend that the growing literature in the area of corporate finance and governance investigating the impact of characteristics of directors on corporate outcomes, need to take note of the complementary impact that social capital can have in addition to human capital.

Suggested Citation

  • Angela Andersen & Alexandre Garel & Aaron Gilbert & Alireza Tourani-Rad, 2022. "Disentangling Director Attributes: Human Capital versus Social Capital of Directors," JRFM, MDPI, vol. 15(8), pages 1-21, July.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:8:p:336-:d:875385
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    References listed on IDEAS

    as
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