| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP14591 |
| DP14591 The Value of Firm Networks: A Natural Experiment on Board Connections | |
| Ester Faia; Maximilian Mayer; Vincenzo Pezone | |
| 发表日期 | 2020-04-09 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | This paper presents causal evidence of the effects of boardroom networks on firm value and compensation policies. We exploit exogenous variation in network centrality arising from a ban on interlocking directorates of Italian financial and insurance companies. We leverage this shock to show that firms whose centrality in the network rises after the reform experience positive abnormal returns around the announcement date and are better hedged against shocks. Information dissemination plays a central role: results are driven by firms that have higher idiosyncratic volatility, low analyst coverage, and more uncertainty surrounding their earnings forecasts. Firms benefit more from boardroom centrality when they are more central in the input-output network, hence more susceptible to upstream shocks, when they are less central in the cross-ownership network, or when they have low profitability or low growth opportunities. Network centrality also results in higher directors’ compensation, due to rent sharing and improved executives’ outside option, and more similar compensation policies between connected firms. |
| 主题 | Financial Economics ; Macroeconomics and Growth |
| 关键词 | Firms networks Natural experiment Executives’ compensation |
| URL | https://cepr.org/publications/dp14591-0 |
| 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/543499 |
| 推荐引用方式 GB/T 7714 | Ester Faia,Maximilian Mayer,Vincenzo Pezone. DP14591 The Value of Firm Networks: A Natural Experiment on Board Connections. 2020. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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