Outside directors' social capital and firm performance: A complex network approach

Social Behavior and Personality

Volumn 40, Issue 8, 2012, Pages 1319-1332

  Lee, Ji Hwan ^a   Choi, Chul ^b   Kim, Jae Min ^c  

^a Korea Advanced Institute of Science and Technology (KAIST)   (South Korea)

^b Hankuk University of Foreign Studies   (South Korea)

^c Korea Institute for Defense Analyses   (South Korea)

Author keywords

Betweenness centrality; Closeness centrality; Firm performance; Outside directors; Social capital

Indexed keywords

EID: 84866951042     PISSN: 03012212     EISSN: None     Source Type: Journal    
DOI: 10.2224/sbp.2012.40.8.1319     Document Type: Review

References (33)

1. Agrawal, A., & Knoeber, C. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Financial and Quantitative Analysis, 31, 377-397. http://doi.org/fjmpm6
2. Barrat, A., Barthélemy, M., Pastor-Satorras, R., & Vespignani, A. (2004). The architecture of complex weighted networks. Proceedings of the National Academy of Sciences of the United States of America, 101, 3747-3752. http://doi.org/dppmw5
3. Bourdieu, P. (1986). The forms of capital. In J. G. Richardson (Ed.), Handbook of theory and research for the sociology of education (pp. 241-258). New York: Greenwood.
4. Brandes, U. (2001). A faster algorithm for betweenness centrality. The Journal of Mathematical Sociology, 25, 163-177. http://doi.org/fn726f
5. Brass, D. J. (1992). Power in organizations: A social network perspective. In G. Moore & J. A. White (Eds.), Research in politics and society (pp. 295-323). Greenwich, CT: JAI.
6. Burt, R. S. (1992). Structural holes. Cambridge: Cambridge University Press.
7. Chang, S. C., Tu, C. J., Li, T.-J., & Tsai, B.-K. (2010). Social capital, cooperative performance, and future cooperation intention among recreational farm area owners in Taiwan. Social Behavior and Personality: An international journal, 38, 1409-1429. http://doi.org/d93928
8. Choi, J. J., Park, S. W., & Yoo, S. S. (2007). The value of outside directors: Evidence from corporate governance reform in Korea. Journal of Financial and Quantitative Analysis, 42, 941-962. http://doi.org/bwx9bm
9. Coleman, J. S. (1990). Foundations of social theory. Cambridge, MA: Harvard University Press.
10. Costenbader, E., & Valente, T. W. (2003). The stability of centrality measures when networks are sampled. Social Networks, 25, 293-307. http://doi.org/dcc6wv
11. Dijkstra, E. W. (1959). A note on two problems in connexion with graphs. Numerische Mathematik, 1, 269-271. http://doi.org/dpvk8c
12. DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48, 147-160.
13. Fama, E. F., & French, K. R. (1995). Size and book-to-market factors in earnings and returns. Journal of Finance, 50, 131-155.
14. Fich, E. M., & Shivdasani, A. (2006). Are busy boards effective monitors? Journal of Finance, 61, 689-724. http://doi.org/b6kj2j
15. Freeman, L. (1978). Centrality in social networks: Conceptual clarification. Social Networks, 1, 215-239. http://doi.org/bx3m36
16. Jiraporn, P., Kim, Y. S., & Davidson W. N., III. (2008). Multiple directorships and corporate diversi- fication. Journal of Empirical Finance, 15, 418-435. http://doi.org/cz9k7d
17. Johnson, J. L., Daily, C., & Ellstrand, A. (1996). Boards of directors: A review and research agenda. Journal of Management, 22, 409-438. http://doi.org/cgpcgx
18. JOINS Personal Information Service. Retrieved from http://people.joins.com/
19. Kim, Y. (2005). Board network characteristics and firm performance in Korea. Corporate Governance: An International Review, 13, 800-808. http://doi.org/fwzkgv
20. Kim, Y. (2007). The proportion and social capital of outside directors and their impacts on firm value: Evidence from Korea. Corporate Governance: An International Review, 15, 1168-1176. http://doi.org/dbk4x4
21. KISVALUE. Retrieved from http://www.kisvalue.com/
22. Korea Companies Information, Retrieved from http://www.kocoinfo.com/
23. Kotter, J. P. (1982). The general managers. New York: Free Press.
24. Lee, C. (1994). Social capital, social closure, and human capital development: The case of managerial workers in Korean Chaebol. Unpublished doctoral dissertation, The University of Chicago.
25. Lee, Y.-H., Yang, L.-S., Wan, K. M., & Chen, G.-H. (2010). Interactive effects of personality and friendship networks on contextual performance. Social Behavior and Personality: An international journal, 38, 197-208. http://doi.org/bt7k33
26. Locke, E. (1999). Some reservations about social capital. The Academy of Management Review, 24, 8-9.
27. Nahapiet, I., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. The Academy of Management Review, 23, 242-266.
28. Newman, M. E. J. (2001). Scientific collaboration networks. II. Shortest paths, weighted networks, and centrality. Physical Review E, 64, 016132. http://doi.org/cwjfzf
29. Oehmichen, J., Rapp, M. S., & Wolff, M. (2009). Busy boards in a two-tier system: Old-boys network or efficient monitoring technology? Paper presented at the Annual International Conference of the Strategic Management Society, Washington, DC.
30. Peng, M. W. (2004). Outside directors and firm performance during institutional transitions. Strategic Management Journal, 12, 453-471. http://doi.org/ffws75
31. Wasserman, S., & Faust, F. (1994). Social network analysis: Methods and applications. Cambridge: Cambridge University Press.
32. Wellman, B., & Berkowitz, S. D. (1988). Social structures: A network approach. Cambridge: Cambridge University Press.
33. Wellman, B., & Gulia, M. (1999). Virtual communities as communities: Net surfers don't ride alone. In M. A. Smith & P. Kollock (Eds.), Communities in cyberspace (pp. 167-194). London: Routledge.