EconPapers    
Economics at your fingertips  
 

Does it pay to have friends? Social ties and executive appointments in banking

Allen N. Berger, Thomas Kick (), Michael Koetter and Klaus Schaeck ()

No 2011,18, Discussion Paper Series 2: Banking and Financial Studies from Deutsche Bundesbank

Abstract: Social capital theory predicts individuals establish social ties based on homophily, i.e., affinities for similar others. We exploit a unique sample to analyze how similarities and social ties affect career outcomes in banking based on age, education, gender, and employment history to examine if homophily and connectedness increase the probability that the appointee to an executive board is an outsider (an individual without previous employment at the bank) compared to being an insider. Our results show that homophily based on age and gender raises the chance of the successful candidate being an outsider, whereas similar educational backgrounds reduce the chance that the appointee comes from outside. When we examine performance effects, we find weak evidence that social ties are associated with reduced profitability.

Keywords: Social networks; executive careers; banking; corporate governance (search for similar items in EconPapers)
JEL-codes: G21 G32 G34 J16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hme, nep-lab and nep-soc
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/57783/1/715112015.pdf (application/pdf)

Related works:
Journal Article: Does it pay to have friends? Social ties and executive appointments in banking (2013) Downloads
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:zbw:bubdp2:201118

Access Statistics for this paper

More papers in Discussion Paper Series 2: Banking and Financial Studies from Deutsche Bundesbank Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2019-05-22
Handle: RePEc:zbw:bubdp2:201118