CEO social capital and capital structure complexity

Mundi, Hardeep Singh

doi:10.1016/j.jbef.2022.100719

Cited by 8 publications

(8 citation statements)

References 85 publications

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“…We have collected data for 443 companies from 2009 to 2020; financial services and banking companies are excluded from the analysis. The exclusion of financial firms is in agreement with the existing literature (Mundi, 2023). We have also excluded firms for which the required data was not available.…”

Section: Methodssupporting

confidence: 90%

“…Recently expected return calculations using option prices are also gaining momentum in finance research (Mundi, 2021). Studying stock price synchronicity in an emerging economy is crucial as emerging economies are unique in terms of market structure, characteristics of chief executive officers (Mundi, 2022), and firm characteristics (Kumar and Mundi, 2022).…”

Section: Introductionmentioning

confidence: 99%

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Stock Return Synchronicity and Profitability: Evidence from India

Murthy,

Mundi

2023

Paradigm: A Management Research Journal

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The current research article studies the stock return synchronicity (SYNCH) and profitability for Indian firms. SYNCH is measured using the value of R2 calculated from the market model for the sample firms. The market model runs regressions of individual stock returns with the Nifty index return. The quantile regression model is run to study the SYNCH and profit after tax (PAT). In addition, the SYNCH and its relation with PAT for low-quantile firms are compared to the SYNCH of high-quantile firms. After controlling for relevant variables, the quantile regression results provide evidence that SYNCH is related to PAT. The reported results also provide evidence that the lower quantile firms differ from higher quantile firms in terms of the impact of PAT on SYNCH.

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Section: Methodssupporting

confidence: 90%

Section: Introductionmentioning

confidence: 99%

Stock Return Synchronicity and Profitability: Evidence from India

Murthy,

Mundi

2023

Paradigm: A Management Research Journal

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“…Third, this study adds to the debate on the relevance of CEOs' social capital (Mundi, 2022) in corporate decision-making. Ferris et al (2017) document the impact of CEOs' social capital on corporate decision-making.…”

Section: Introductionmentioning

confidence: 93%

“…Third, this study adds to the debate on the relevance of CEOs' social capital (Mundi, 2022) in corporate decision-making. Ferris et al .…”

Section: Introductionmentioning

confidence: 96%

CEO social network, capital structure complexity and firm performance

Mundi

2023

RBF

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PurposeThe paper aims to examine the effect of CEOs' social networks on capital structure complexity (CSC) and firm performance.Design/methodology/approachOrdinary Least Squares regression (OLS) and Generalized method of moments (GMM) regression results estimate the effect of CEOs' (Chief executive officer) social networks on capital structure complexity and firm performance. The number of sources of capital (NSC) and concentration ratio estimate the capital structure complexity for the sample firms.FindingsThe results show that CEOs' social networks significantly influence CSC. We suggest that the CEOs' social networks encourage them to make more complex capital structure decisions. This behavior deteriorates firm performance.Research limitations/implicationsThere is a lack of systematic conceptual reason for measuring CEO social network. Future research should use other measures of the social network to estimate the relation of the CEO's social network with CSC and firm performance.Practical implicationsThe findings support the managerial power approach and social network theory that the observable characteristics of CEOs influence CSC. The results are robust for an alternative explanation.Originality/valueBy investigating the impact of the influence of CEOs' social networks on CSC and performance, the authors extend research on strategic leadership and capital structure and firm performance.

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“…Since the contingent liabilities data are available from 2012, our sample period covers 2012 to 2022. In agreement with prior literature, firms in the financial industry are removed (Mundi, 2022). After removing firms with missing observations and financial industry, we have 2,585 firm-year observations.…”

Section: Sample Selectionmentioning

confidence: 99%

Do contingent liabilities affect dividend decisions?

Chaklader,

Mundi

2023

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PurposeThe paper examines contingent liabilities' effect on the firm's dividend decisions.Design/methodology/approachFixed-effects regression and logit model results estimate the influence of contingent liabilities on firms' dividend decisions using a sample of 2,288 firm-year observations of S&P 500 firms from 2012 until 2022. Robustness checks and results from the 2SLS model further support the authors’ findings.FindingsThe results show that contingent liabilities negatively affect dividend payment decisions. This analysis further demonstrates that the stated effect of contingent liabilities on dividend decisions is more substantial for firms with financing deficits and those with above-industry-average corporate governance scores.Research limitations/implicationsThere needs to be more systematic conceptual reason for measuring uncertainty for firms and its influence on dividend decisions. Future research should use other measures of firm uncertainty to examine the relation of the firm's uncertainty with dividend decisions.Practical implicationsThe authors suggest that contingent liabilities create uncertainty for future cash flows, influence a firm's agency costs and provide credible signals on a firm's prospects to the market. The findings support existing literature that measurable firm-specific variables significantly influence a firm's dividend decisions. The results are robust for an alternative explanation.Originality/valueBy investigating the impact of the influence of contingent liabilities on dividends, the authors extend research on dividend decisions and attempt to provide insights into a firm's dividend decisions by incorporating an off-the-balance sheet item (contingent liabilities) as a significant predictor for dividend decisions.

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CEO social capital and capital structure complexity

Cited by 8 publications

References 85 publications

Stock Return Synchronicity and Profitability: Evidence from India

Stock Return Synchronicity and Profitability: Evidence from India

CEO social network, capital structure complexity and firm performance

Do contingent liabilities affect dividend decisions?

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