CEO social capital, risk-taking and corporate policies

被引：177
作者：
Ferris, Stephen P. [1 ]
Javakhadze, David [2 ]
Rajkovic, Tijana [3 ]
机构：
[1] Univ Missouri, Trulaske Coll Business, Columbia, MO 65201 USA
[2] Florida Atlantic Univ, Coll Business, Boca Raton, FL 33431 USA
[3] San Jose State Univ, Lucas Coll Business, San Jose, CA 95192 USA
来源：
JOURNAL OF CORPORATE FINANCE | 2017年 / 47卷
关键词：
Social capital; Social networks; Corporate risk-taking; MANAGERIAL INCENTIVES; BOARD CONNECTIONS; SMALL WORLD; FIRM; GOVERNANCE; OWNERSHIP; MEDIATION; NETWORKS; BEHAVIOR; MATTER;
D O I：
10.1016/j.jcorpfin.2017.09.003
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We provide the first direct empirical evidence of the effect of CEO social capital on aggregate corporate risk-taking. Our theory predicts that CEOs with high social capital display higher levels of risk-seeking behavior. Consistent with this prediction, we find a positive association between CEO social capital and aggregate corporate risk-taking. Examining the channel, we show that social ties cause corporate policy actions, and these actions lead to greater volatilities in stock returns and earnings. In addition, we uncover a number of factors that significantly moderate the effects of social capital on risk-taking. We also show that this increase in risk-taking is value-enhancing to the firm. Our results are robust to alternative proxies for risk-taking, alternative model specifications, and tests for endogeneity. (C) 2017 Published by Elsevier B.V.
引用
收藏
页码：46 / 71
页数：26
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