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Small worlds and board interlocking in Brazil: a longitudinal study of corporate networks, 1997-2007

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  • Mendes-Da-Silva, Wesley

Abstract

Social Network Analysis (SNA) is an emerging research field in finance, above all in Brazil. This work is pioneering in that it is supported by reference to different areas of knowledge: social network analysis and corporate governance, for dealing with a similarly emerging topic in finance; interlocking boards, the purpose being to check the validity of the small-world model in the Brazilian capital market, and the existence of associations between the positioning of the firm in the network of corporate relationships and its worth. To do so official data relating to more than 400 companies listed in Brazil between 1997 and 2007 were used. The main results obtained suggest that the configuration of the networks of relationships between board members and companies reflects the small-world model. Furthermore, there seems to be a significant relationship between the firm’s centrality and its worth, described according to an “inverted U” curve, which suggests the existence of optimum values of social prominence in the corporate network.

Suggested Citation

  • Mendes-Da-Silva, Wesley, 2011. "Small worlds and board interlocking in Brazil: a longitudinal study of corporate networks, 1997-2007," MPRA Paper 34152, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:34152
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    1. repec:kap:jmgtgv:v:22:y:2018:i:1:d:10.1007_s10997-017-9382-8 is not listed on IDEAS
    2. repec:kap:jmgtgv:v:21:y:2017:i:4:d:10.1007_s10997-017-9375-7 is not listed on IDEAS
    3. Biswas, Shreya, 2015. "Small World of Inter-firm Network an Firm's Acquisition Behaviour - An Evidence from India," MPRA Paper 67508, University Library of Munich, Germany.
    4. Shreya Biswas, 2016. "Small world of inter-firm network and firm's acquisition behaviour," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2016-003, Indira Gandhi Institute of Development Research, Mumbai, India.

    More about this item

    Keywords

    Board Interlocking; Social Network Analysis in Finance; Company Boards;

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • G3 - Financial Economics - - Corporate Finance and Governance

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