Small worlds and board interlocking in Brazil: a longitudinal study of corporate networks, 1997-2007
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.
|Date of creation:||15 Oct 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lauren Cohen & Andrea Frazzini & Christopher Malloy, 2007.
"The Small World of Investing: Board Connections and Mutual Fund Returns,"
NBER Working Papers
13121, National Bureau of Economic Research, Inc.
- Lauren Cohen & Andrea Frazzini & Christopher Malloy, 2008. "The Small World of Investing: Board Connections and Mutual Fund Returns," Journal of Political Economy, University of Chicago Press, vol. 116(5), pages 951-979, October.
- Ira C. Harris & Katsuhiko Shimizu, 2004. "Too Busy To Serve? An Examination of the Influence of Overboarded Directors," Journal of Management Studies, Wiley Blackwell, vol. 41(5), pages 775-798, 07.
- Avanidhar Subrahmanyam, 2008. "Social Networks and Corporate Governance," European Financial Management, European Financial Management Association, vol. 14(4), pages 633-662.
- Lauren Cohen & Andrea Frazzini & Christopher Malloy, 2010.
"Sell-Side School Ties,"
Journal of Finance,
American Finance Association, vol. 65(4), pages 1409-1437, 08.
- Martin J. Conyon & Mark R. Muldoon, 2006. "The Small World of Corporate Boards," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(9-10), pages 1321-1343.
- Eliezer M. Fich & Anil Shivdasani, 2006. "Are Busy Boards Effective Monitors?," Journal of Finance, American Finance Association, vol. 61(2), pages 689-724, 04.
- Christa H. S. Bouwman, 2011. "Corporate Governance Propagation through Overlapping Directors," Review of Financial Studies, Society for Financial Studies, vol. 24(7), pages 2358-2394.
- Martínez-Jaramillo, Serafín & Pérez, Omar Pérez & Embriz, Fernando Avila & Dey, Fabrizio López Gallo, 2010. "Systemic risk, financial contagion and financial fragility," Journal of Economic Dynamics and Control, Elsevier, vol. 34(11), pages 2358-2374, November.
- Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-25, June.
- Yaron Leitner, 2005. "Financial Networks: Contagion, Commitment, and Private Sector Bailouts," Journal of Finance, American Finance Association, vol. 60(6), pages 2925-2953, December.
- Yermack, David, 1996. "Higher market valuation of companies with a small board of directors," Journal of Financial Economics, Elsevier, vol. 40(2), pages 185-211, February.
- Hans Westlund & Frane Adam, 2009. "Social Capital and Economic Performance: A Meta-analysis of 65 Studies," European Planning Studies, Taylor & Francis Journals, vol. 18(6), pages 893-919, November.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:34152. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.