Are bonds blind? Board-CEO social networks and firm risk
| dc.cclicence | CC-BY-NC | en |
| dc.contributor.author | Fan, Yaoyao | |
| dc.contributor.author | Boateng, Agyenim | |
| dc.contributor.author | Ly, Kim | |
| dc.contributor.author | Jiang, Yuxiang | |
| dc.date.acceptance | 2021-02-26 | |
| dc.date.accessioned | 2021-03-24T09:46:58Z | |
| dc.date.available | 2021-03-24T09:46:58Z | |
| dc.date.issued | 2021-03-18 | |
| dc.description | The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link. | en |
| dc.description.abstract | We examine the impact of social networks between independent directors and the CEO on firm risk. Employing the deaths and retirements of socially connected independent directors and the passage of the 2002 Sarbanes-Oxley Act for two identifications, we find that board-CEO social networks have a positive impact on firm risk. Specifically, CEOs who are socially connected to their independent directors are motivated to adopt riskier investment, operating and financing strategies. This positive influence is more pronounced for prior under-performing firms and for CEOs with low power or overconfidence, indicating that board-CEO social networks act as career insurance and a power-enhancing mechanism to encourage managerial risk-taking. | en |
| dc.funder | No external funder | en |
| dc.identifier.citation | Fan, Y., Boateng, A., Ly, K., Jiang, Y. (2021) Are bonds blind? Board-CEO social networks and firm risk. Journal of Corporate Finance, 101922. | en |
| dc.identifier.doi | https://doi.org/10.1016/j.jcorpfin.2021.101922 | |
| dc.identifier.issn | 0929-1199 | |
| dc.identifier.uri | https://dora.dmu.ac.uk/handle/2086/20719 | |
| dc.language.iso | en | en |
| dc.peerreviewed | Yes | en |
| dc.publisher | Elsevier | en |
| dc.researchinstitute | Finance and Banking Research Group (FiBRe) | en |
| dc.subject | Board-CEO social networks | en |
| dc.subject | Internal governance mechanism | en |
| dc.subject | Firm risk | en |
| dc.subject | Deaths and retirements of directors | en |
| dc.title | Are bonds blind? Board-CEO social networks and firm risk | en |
| dc.type | Article | en |