Journal article
Boardroom networks and corporate investment
Journal of corporate finance (Amsterdam, Netherlands), Vol.84, 102522
02/01/2024
DOI: 10.1016/j.jcorpfin.2023.102522
Abstract
This paper investigates whether network effects on investment exist and whether firms strate-gically herd their connected firms. To construct firm networks, we utilize board-interlock networks where two firms share at least one common board member and estimate network effects on firms' investment decisions. Our identification strategy is built on adopting charac-teristics of the peers of peers as legitimate instrumental variables. Empirical findings confirm significant network effects on firms' investment and show that firms strategically follow their connected firms with high-quality information.
Details
- Title: Subtitle
- Boardroom networks and corporate investment
- Creators
- Suyong Song - University of Iowa, EconomicsJiawei (Brooke) Wang - Miami University
- Resource Type
- Journal article
- Publication Details
- Journal of corporate finance (Amsterdam, Netherlands), Vol.84, 102522
- DOI
- 10.1016/j.jcorpfin.2023.102522
- ISSN
- 0929-1199
- eISSN
- 1872-6313
- Publisher
- Elsevier
- Number of pages
- 23
- Language
- English
- Date published
- 02/01/2024
- Academic Unit
- Economics; Finance
- Record Identifier
- 9984938143302771
Metrics
1 Record Views