Corporate finance policies and social networks

Management Science

Volumn 63, Issue 8, 2017, Pages 2420-2438

  Fracassia, Cesare ^a  

^a UNIVERSITY OF TEXAS AT AUSTIN   (United States)

Author keywords

Capital investments; Corporate finance policy decisions; Social networks

Indexed keywords

DECISION MAKING; FINANCE; SOCIAL NETWORKING (ONLINE);

CAPITAL INVESTMENT; CORPORATE FINANCE; CORPORATE POLICIES; ECONOMIC PERFORMANCE; ENDOGENEITY; PUBLIC COMPANY; SOCIAL TIES;

INVESTMENTS;

EID: 85027303615     PISSN: 00251909     EISSN: 15265501     Source Type: Journal    
DOI: 10.1287/mnsc.2016.2433     Document Type: Article

References (47)

1. Banerjee AV (1992) A simple model of herd behavior. Quart. J. Econom. 107(3):797-817.
2. Barnea A, Guedj I (2013) Director networks. Working paper, HEC Montreal, Montreal, Canada.
3. Bennedsen M, Perez-Gonzalez F,Wolfenzon D (2007) Do CEOs matter? Working paper, INSEAD, Fontainebleau, France.
4. Bertrand M, Schoar A (2003) Managing with style: The effect of managers on firm policies. Quart. J. Econom. 118(4):1169-1207.
5. Bikhchandani S, Sharma S (2001) Herd behavior in financial markets. IMF Staff Papers 47(3):279-310.
6. Bikhchandani S, Hirshleifer D, Welch I (1992) A theory of fads, fashion, custom, and cultural change as informational cascades. J. Political Econom. 100(5):992-1026.
7. Brown JR, Fazzari SM, Petersen BC (2009) Financing innovation and growth: Cash flow, external equity, and the 1990s R&D boom. J. Finance 64(1):151-185.
8. Brown JR, Ivkovic Z, Smith PA,Weisbenner S (2008) Neighbors matter: Causal community effects and stock market participation. J. Finance 63(3):1509-1531.
9. Buskens V (2002) Social Networks and Trust (Kluwer Academic Publishers, Norwell, MA).
10. Cai Y, Sevilir M (2012) Board connections and M&A transactions. J. Financial Econom. 103(2):327-349.
11. Chava S, Roberts MR (2008) How does financing impact investment? The role of debt covenants. J. Finance 63(5):2085-2121.
12. Clement MB, Tse SY (2005) Financial analyst characteristics and herding behavior in forecasting. J. Finance 60(1):307-341.
13. Cohen L, Frazzini A, Malloy C (2008) The small world of investing: Board connections and mutual fund returns. J. Political Econom. 116(5):951-979.
14. Coleman JS (1988) Social capital in the creation of human capital. Amer. J. Sociology 94:S95-S120.
15. Dougal C, Parsons CA, Titman S (2015) Urban vibrancy and corporate growth. J. Finance 70(1):163-210.
16. Ellison G, Fudenberg D (1993) Rules of thumbs for social learning. J. Political Econom. 101(4):612-643.
17. Ellison G, Fudenberg D (1995) Word-of-mouth communication and social learning. Quart. J. Econom. 110(1):93-125.
18. Engelbert J, Gao P, Parsons CA (2012) Friends with money. J. Financial Econom. 103(1):169-188.
19. Fama EF, French KR (2002) Testing tradeoff and pecking order predictions about dividends and debt. Rev. Financial Stud. 15(1): 1-33.
20. Fracassi C, Tate G (2012) External networking and internal firm governance. J. Finance 67(1):153-194.
21. Frankel JA, Romer D (1999) Does trade cause growth? Amer. Econom. Rev. 89(3):379-399.
22. Gormley TA, Matsa DA (2014) Common errors: How to (and not to) control for unobserved heterogeneity. Rev. Financial Stud. 27(2):617-661.
23. Graham JR (1999) Herding among investment newsletters: Theory and evidence. J. Finance 54(1):237-268.
24. Graham JR, Harvey CR, Puri M (2013) Managerial attitudes and corporate actions. J. Financial Econom. 109(1):103-121.
25. Grinblatt M, Titman S, Wermers R (1995) Momentum investment strategies, portfolio performance, and herding: A study of mutual fund behavior. Amer. Econom. Rev. 85(5):1088-1105.
26. Harford J, Mansi SA, Maxwell WF (2008) Corporate governance and firm cash holdings in the US. J. Financial Econom. 87(3): 535-555.
27. Hong H, Kubik JD, Solomon A (2000) Security analysts career concerns and herding of earnings forecasts. RAND J. Econom. 31(1):121-144.
28. Hwang BH, Kim S (2009) It pays to have friends. J. Financial Econom. 93(1):138-158.
29. Ishii J, Xuan Y (2014) Acquirer-target social ties and merger outcomes. J. Financial Econom. 112(3):344-363.
30. Kilduff M, Tsai W (2003) Social Networks and Organizations (Sage Publications, Thousand Oaks, CA).
31. Lakonishok J, Shleifer A, Vishny RW (1992) The impact of institutional trading on stock prices. J. Financial Econom. 32(1):23-43.
32. Lemmon ML, Roberts MR, Zender JF (2008) Back to the beginning: Persistence and the cross-section of corporate capital structure. J. Finance 63(4):1575-1608.
33. Malmendier U, Tate G (2005) CEO overconfidence and corporate investment. J. Finance 60(6):2661-2700.
34. McPherson M, Smith-Lovin L, Cook JM (2001) Birds of a feather: Homophily in social networks. Annual Rev. Sociol. 27:415-444.
35. Nguyen BD (2012) Does the rolodex matter? Corporate elite's small world and the effectiveness of boards of directors. Management Sci. 58(2):236-252.
36. Park A, Sabourian H (2011) Herding and contrarian behavior in financial markets. Econometrica 79(4):973-1026.
37. Petersen MA (2009) Estimating standard errors in finance panel data sets: Comparing approaches. Rev. Financial Stud. 22(1): 435-480.
38. Salas JM (2010) Entrenchment, governance, and the stock price reaction to sudden executive deaths. J. Banking Finance 34(3): 656-666.
39. Scharfstein D, Stein JC (1990) Herd behavior and investment. Amer. Econom. Rev. 80(3):465-479.
40. Shue K (2013) Executive networks and firm policies: Evidence from the random assignment of MBA peers. Rev. Financial Stud. 26(6): 1401-1442.
41. Sias RW (2004) Institutional herding. Rev. Financial Stud. 17(1): 165-206.
42. Trueman B (1994) Analyst forecasts and herding behavior. Rev. Financial Stud. 7(1):97-124.
43. Wasserman S, Faust K (1997) Social Network Analysis: Methods and Applications (Cambridge University Press, Cambridge, UK).
44. Watts DJ (2003) Six Degrees-The Science of a Connected Age (W. W. Norton & Company, New York).
45. Weisbach MS (1995) CEO turnover and the firm's investment decisions. J. Financial Econom. 37(1):159-188.
46. Welch I (1992) Sequential sales, learning and cascades. J. Finance 47(2):695-732.
47. Wermers R (1999) Mutual fund herding and the impact on stock prices. J. Finance 54(2):581-622.