CEO social network, capital structure complexity and firm performance

IF 1.9 Q2 BUSINESS, FINANCE Review of Behavioral Finance Pub Date : 2023-03-28 DOI:10.1108/rbf-09-2022-0214

Hardeep Singh Mundi

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引用次数: 1

Abstract

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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CEO社会网络、资本结构复杂性与企业绩效

目的研究ceo社会网络对资本结构复杂性(CSC)和企业绩效的影响。设计/方法/方法普通最小二乘回归(OLS)和广义矩量法(GMM)回归结果估计了ceo(首席执行官)社会网络对资本结构复杂性和企业绩效的影响。资本来源数(NSC)和集中度估算了样本企业资本结构的复杂性。研究结果表明，ceo的社交网络对企业绩效有显著影响。我们认为ceo的社交网络鼓励他们做出更复杂的资本结构决策。这种行为使公司绩效恶化。研究局限/启示对CEO社交网络的测量缺乏系统的概念性理由。未来的研究应该使用社会网络的其他度量来评估CEO社会网络与企业绩效和企业绩效之间的关系。实践意义本研究结果支持了管理权力理论和社会网络理论，即ceo的可观察性特征会影响企业绩效。对于另一种解释，结果是可靠的。原创性/价值通过研究ceo社交网络对企业绩效和企业绩效的影响，拓展了战略领导力、资本结构和企业绩效的研究。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Behavioral Finance BUSINESS, FINANCE-

CiteScore

4.70

自引率

5.00%

发文量

期刊介绍： Review of Behavioral Finance publishes high quality original peer-reviewed articles in the area of behavioural finance. The RBF focus is on Behavioural Finance but with a very broad lens looking at how the behavioural attributes of the decision makers influence the financial structure of a company, investors’ portfolios, and the functioning of financial markets. High quality empirical, experimental and/or theoretical research articles as well as well executed literature review articles are considered for publication in the journal.