Small World of Inter-firm Network an Firm's Acquisition Behaviour - An Evidence from India

Shreya Biswas

MPRA Paper from University Library of Munich, Germany

Abstract: Using a sample of listed firms in India, the study finds that the inter-firm network on account of director interlocks is a small world and the network has become more integrated since the introduction of corporate governance regulations in the country. Firm level analysis finds a negative relation between average path length and probability of acquiring indicating the importance of faster reach of information among the firms within the network. It also finds a non-linear relation given by inverted U-shaped curve between firm level clustering and probability of acquiring. Initially, increase in clustering has a positive effect through the informational quality effect; however at higher levels the negative informational redundancy effect dominates leading to a curvilinear relation.

Keywords: Corporate Governance; Small-world; Director Interlocks; Inter-firm Network; Acquisitions (search for similar items in EconPapers)
JEL-codes: G32 G34 L25 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-bec and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/67508/1/MPRA_paper_67508.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:67508

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().