全球智库信息集成服务系统(G2TT): DP5544 Scared by Foreigners and their Products? Survey Evidence from France

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP5544
	DP5544 Scared by Foreigners and their Products? Survey Evidence from France
	Thierry Verdier; Akiko Suwa-Eisenmann; Olivier Cadot; Pierre-Yves Geoffard
发表日期	2006-03-02
出版年	2006
语种	英语
摘要	This paper provides empirical evidence consistent with the facts that (1) social networks may strongly affect board composition and (2) social networks may be detrimental to corporate governance. Our empirical investigation relies on a unique dataset on executives and outside directors of corporations listed on the Paris stock exchange over the 1992-2003 period. This data source is a matched employer employee dataset providing both detailed information on directors/CEOs and information on the firm employing them. We first find a very strong and robust correlation between the CEO's network and that of his directors. Networks of former high ranking civil servants are the most active in shaping board composition. Our identification strategy takes into account (1) differences in unobserved directors 'abilities' and (2) the unobserved propensity of firms to hire directors from particular networks, irrespective of the CEO's identity. We then show that the governance of firms run by former civil servants is relatively worse on many dimensions. Former civil servants are less likely to leave their CEO job when their firm performs badly. Secondly, CEOs who are former bureaucrats are more likely to accumulate directorships, and the more they do, the less profitable is the firm they run. Thirdly, the value created by acquisitions made by former bureaucrats is lower. All in all, these firms are less profitable on average.
主题	Financial Economics
关键词	Social Networks Corporate governance Board of directors
URL	https://cepr.org/publications/dp5544
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/534385
推荐引用方式 GB/T 7714	Thierry Verdier,Akiko Suwa-Eisenmann,Olivier Cadot,et al. DP5544 Scared by Foreigners and their Products? Survey Evidence from France. 2006.