Director network resources and firm performance: Evidence from Indian corporate governance reforms
Tara Shankar Shaw (),
James J. Cordeiro () and
Palanisamy Saravanan ()
Additional contact information
Tara Shankar Shaw: Indian Institute of Technology Bombay
James J. Cordeiro: SUNY Brockport
Palanisamy Saravanan: Rajiv Gandhi Indian Institute of Management Shillong
Asian Business & Management, 2016, vol. 15, issue 3, 165-200
Abstract Drawing on resource-dependence theory, we hypothesized that in an emerging economy characterized by weak underdeveloped institutions, director interlocks would be a conduit of resources external to the firm. Using data from 651 large Indian firms for the years 2006–2012, we found that directors’, especially independent directors’, social capital and industry-level expertise enhanced firm performance. Our findings contribute by providing evidence of the beneficial role of directors in providing resources through their interlocks, contrary to the basic tenet of corporate governance that independent directors are chosen for their monitoring role to reduce agency costs.
Keywords: corporate governance; resource-dependence theory; social capital theory; director’s industry expertise (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1057/s41291-016-0003-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
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:pal:abaman:v:15:y:2016:i:3:d:10.1057_s41291-016-0003-1
Ordering information: This journal article can be ordered from
Access Statistics for this article
Asian Business & Management is currently edited by Fabian Jintae Froese
More articles in Asian Business & Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla ().