Top management team interlocking network and corporate unethical behavior: the moderating role of media coverage and knowledge background

Yun Hu () and Zhuohang Li
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Yun Hu: Jiangsu Second Normal University
Zhuohang Li: City University of Macau

Palgrave Communications, 2025, vol. 12, issue 1, 1-16

Abstract: Abstract Recently, the increasing application of the top management team (TMT) interlocking network, formed by executives holding top positions in multiple companies, has underscored their crucial role in corporate governance. Drawing on social network theory, this study devises a framework to reveal the mechanism by which the TMT interlocking network influences corporate unethical behavior (CUB) for the first time. It argues that when the TMT becomes a key hub in the TMT interlocking network, it can bring more information, resources, and social reputation to prevent CUB. Using data from Chinese A-share listed companies from 2009 to 2019, empirical support for the prediction is found. Moreover, the investigation examines how media coverage positively moderates the relationship between TMT interlocking networks and CUB. The moderating effects of TMT knowledge background vary: political, overseas, and award backgrounds enhance the inhibitory effect of TMT interlocking networks on CUB, whereas the moderating effects of financial and academic backgrounds are not significant. The findings help reduce the likelihood of unethical behavior and promote a healthier, more stable, and sustainable capital market.

Date: 2025
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DOI: 10.1057/s41599-025-05231-x

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