Does the capital of social capital matter? Relational resources of the board and the performance of Brazilian companies
Luciano Rossoni (),
Cezar Eduardo Aranha () and
Wesley Mendes-Da-Silva ()
Additional contact information
Luciano Rossoni: UniGranRio and Brazilian Institute of Social Research (IBEPES)
Cezar Eduardo Aranha: IBM Research
Journal of Management & Governance, 2018, vol. 22, issue 1, No 8, 153-185
Abstract Based on theories of social capital, in this study, we seek to assess the impact of a board’s social capital on the market value of companies listed on the Brazilian stock exchange. As our indicator of social capital, we use the relational resources identified in the direct, indirect and heterogeneous ties of the board. Employing panel data from 508 observations, our results indicate that heterogeneous relational resources have a stronger and more significant influence than the resources available from board members’ direct relationships. Additionally, as the effects of board interlock are endogenously determined by several factors related to the firm level, we seek to mitigate the endogeneity problem using models of instrumental variables and simultaneous equations. Our hypotheses were consistent after controlling for endogeneity. We also check whether the board’s social capital could present a U-inverted effect on the market value. This relationship was only plausible in social capital by indirect ties. Finally, we isolate the effect of relational resources within and between industries on Tobin’s Q. There was no significant effect through interlocks within the same industry. However, ties with companies in several other industries were significant.
Keywords: Social capital; Board interlock; Social networks analysis; Performance; Market value; Endogeneity (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10997-017-9382-8 Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:jmgtgv:v:22:y:2018:i:1:d:10.1007_s10997-017-9382-8
Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/10997/PS2
Access Statistics for this article
Journal of Management & Governance is currently edited by Lino Cinquini
More articles in Journal of Management & Governance from Springer, Accademia Italiana di Economia Aziendale (AIDEA) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().