Corporate Governance Reforms, Interlocking Directorship Networks and Company Value in Italy (1998-2007)

Drago, Carlos; Millo, Francesco; Ricciuti, Roberto; Santella, Paolo

doi:10.2139/ssrn.1756575

Cited by 3 publications

(5 citation statements)

References 19 publications

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“…On the other hand, this study did not confirm the other research results showing a negative effect of the corporate network on firm performance (Fligstein and Brantley, 1992; Van Ees et al , 2003; Non and Franses, 2007; Andres et al , 2013; Croci and Grassi, 2014; Drago et al , 2015). The lack of statistical significance of the relationship corporate network position-performance may indicate a relatively neutral association, at least for the period included in the study, which was 2 years.…”

Section: Discussioncontrasting

confidence: 99%

“…The results of these studies cannot be generalized to other countries, but they contribute to the literature that has found differential effects of network position (corporate network centrality) on firm performance in different countries. While these results are more consistent with studies of director network centrality in countries as diverse as the Netherlands (Non and Franses, 2007), Germany (Andres et al , 2013) or Italy (Croci and Grassi, 2014; Drago et al , 2015), they stand in contrast to the results observed in the USA (Ferris et al , 2003; Martin et al , 2015), Canada (Richardson, 1987) or Taiwan (Wang et al , 2021). This discrepancy is a clear call for future cross-country studies, which should take into account country-specific characteristics that affect the relationship between firm performance and measures of corporate network centrality.…”

Section: Discussionsupporting

confidence: 75%

“…However, research on how a company’s corporate network position impacts company performance has provided ambiguous results. While some studies indicate IDs have a positive impact on company performance in different countries [Penning, 1980 (USA); Carrington, 1981 (Canada); Burt, 1983 (USA); Richardson, 1987 (Canada); Ferris et al , 2003 (USA); Farina, 2008 (Italy); Sarkar and Sarkar, 2009 (India); Mrizak, 2009 (France); Horton et al , 2012 (UK); Peng et al , 2015 (Chinese firms listed in Hong Kong); Martin et al , 2015 (USA); Wang et al , 2021 (Taiwan); Harjoto and Wang, 2020 (UK)], others suggest they have a negative impact [Mizruchi and Stearns, 1988 (USA); Fligstein and Brantley, 1992 (USA); Non and Franses, 2007 (the Netherlands); Andres et al , 2013 (Germany); Kaczmarek et al , 2014 (UK); Croci and Grassi, 2014 (Italy); Drago et al , 2015 (Italy); Andrikopoulos et al , 2019 (international sample)]. Moreover, some studies demonstrate mixed results [Meeusen and Cuyvers, 1985 (USA, Belgium and the Netherlands); Phan et al , 2003 (Singapore)] or no statistically significant relationships (Da Silva Rosa et al , 2008).…”

Section: Conceptual Framework and Development Of Hypothesesmentioning

confidence: 99%

“…A corporate network is defined as a socioeconomic institution based on the structure of In spite of many studies in the field, research on how a company's corporate network position impacts company performance has provided ambiguous results. While some studies indicate IDs have a positive impact on company performance (Penning, 1980;Carrington, 1981;Burt, 1983;Farina, 2008;Sarkar and Sarkar, 2009;Mrizak, 2009;Peng et al, 2015;Martin et al, 2015;Wang et al, 2021), others suggest they have a negative impact (Mizruchi and Stearns, 1988;Fligstein and Brantley, 1992;Non and Franses, 2007;Croci and Grassi, 2014;Drago et al, 2015). Some studies with results (Meeusen and Cuyvers, 1985;Phan et al, 2003) or no statistically significant relationships (Da Silva Rosa et al, 2008) are also published.…”

Section: Introductionmentioning

confidence: 99%

“…(Amit and Wernerfelt, 1990) HybridMarket value to book value ratio (MV/BV)(Sarkar and Sarkar, 2009;Drago et al, 2015) …”

mentioning

confidence: 99%

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Impact of corporate network position on strategic risk and company’s performance – evidence from Poland

Światowiec-Szczepańska

Stępień

2021

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Purpose The purpose of this study is to investigate the links between a company’s position in a corporate network with its financial performance and strategic risk in the context of the largest Central European stock market. Design/methodology/approach This study integrates the theory of social network analysis (SNA) with corporate governance theory with a special focus on resource dependence theory. Using the framework of network social analysis, the authors use network measures of social capital and embeddedness. Findings The results of studying companies listed on the Polish stock exchange indicate that a company’s corporate network position has a significant negative impact on strategic risk while having no influence on its financial performance. The research also highlights the importance of a firm’s corporate governance model for both performance and strategic risk. Research limitations/implications The data collected, and SNA measures used made it possible to conduct a cross-sectional study. Compared to longitudinal studies, this type of study has a couple of disadvantages addressed in the paper. In the future, the dependencies observed in this study should be tested using longer-term data. Originality/value To the best of the author’s knowledge, this is the first paper integrating the corporate personal and capital networks to test risk and performance dependencies in the context of Poland’s corporate governance model. The findings and conclusions can also be applied to analyzing Central and Eastern Europe stock markets.

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