Bringing the owners back in: An analysis of a 3-mode interlock network

Bohman, Love

doi:10.1016/j.socnet.2012.01.005

Cited by 21 publications

(19 citation statements)

References 44 publications

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“…Suspicions that there is expropriation or tunneling in the transactions between companies seem feasible. It is worth emphasizing, also, that this effect was only visible when the social capital of the board was included in the model, which highlights the complementary nature between these variables in the investigation of the precedents of the cost of capital, as strongly suggested by Bohman [30].…”

Section: Discussionmentioning

confidence: 57%

“…All the previous arguments could be valid too for the effects of social capital on the cost of capital arising from ownership relationships because such relationships are associated with those of the board [30]. However, if the relationships are of another type, there is evidence that they operate differently [15,35].…”

Section: Hypothesis 2 the Larger The Heterogeneity Of Relational Resmentioning

confidence: 99%

“…We also considered the social capital coming from the interlinking between owners since we started from the premise that it might have a different or complementary effect to that of the social capital of the board [30]. Therefore, two firms have a cross-ownership relationship when at least one of them has a shareholding in the other [29].…”

Section: Social Capital Of Cross-ownershipmentioning

confidence: 99%

“…This is because there is a whole range of studies that deal with the board and director interlock [15,[22][23][24][25][26] and ownership interlock [27][28][29], but there are few studies that consider these two types of relationship jointly [30], especially in emerging markets like Brazil.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market

2018

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Starting from sociological perspectives on complexity, we show how the social capital of boards and owners networks affects the implied cost of capital of companies listed on Brazilian stock exchange. We specifically show arguments and evidence that the effect of the relational resources found in the direct, indirect, and heterogeneous board's ties reduces the cost of capital while relational resources embedded in shareholder networks increase the cost of capital. Our results show that while the increase in the relational resources of the board reduces the implied cost of capital, an increase in these shared resources in the ownership relationships of the firm increases the cost of financial capital.

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Section: Discussionmentioning

confidence: 57%

Section: Hypothesis 2 the Larger The Heterogeneity Of Relational Resmentioning

confidence: 99%

Section: Social Capital Of Cross-ownershipmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market

2018

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“…Empirical studies have shown that the separation in companies between ownership and management is only a formality; in terms of interfirm networks, the two are usually closely intertwined (Roy and Bonacich 1988;Windolf and Beyer 1996;Bohman 2012). For example, studies on the economic structure of large Japanese business groups (Lincoln et al 1992) show that cross-shareholding and interlocking directorate networks are the two very common control methods of business groups.…”

Section: Introductionmentioning

confidence: 99%

Property rights and the formation of interfirm networks: a network analysis of the interlocking directorates in China’s listed companies

2017

J. Chin. Sociol.

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Interfirm networks are one of the core modes of corporate governance. However, its formation mechanism is not clearly and adequately delineated. This article highlights the significance of property rights to the formation mechanism of interfirm networks. Using interlocking directorate data from Chinese listed companies during the years 2000-2010, we investigate the association between ownership and network formation, at both the individual attribute level and dyadic level. Results show that companies owned or controlled by the state are more likely to form interlocking networks, and these relations tend to emerge among companies that have identical ownership. The higher the administrative level to which state-controlled companies are affiliated, the more likely they are to form interlocking networks. Theories of economic efficiency also have some explanatory power regarding network formation.

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Networks in Ownership and Management Structures

Vasilis

2023

The Political Economy of Greek Growth Up to 2030

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Bringing the owners back in: An analysis of a 3-mode interlock network

Cited by 21 publications

References 44 publications

The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market

The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market

Property rights and the formation of interfirm networks: a network analysis of the interlocking directorates in China’s listed companies

Networks in Ownership and Management Structures

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