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explores the impact of CEO power or CEO dominance on bond ratings and yield spreads. We find that credit ratings are lower and … higher yields because it is difficult for them to monitor managers in firms with powerful CEOs. Taken together, the results … suggest that bondholders perceive CEO power as a critical determinant of the cost of bond financing …
Persistent link: https://www.econbiz.de/10013146346
We explore the effect of director social capital, directors with large and influential networks, on credit ratings. Using a sample of 11,172 firm-year observations from 1999 to 2011, we find that larger board networks are associated with higher credit ratings than both firm financial data and...
Persistent link: https://www.econbiz.de/10012943814
We explore the impact of director social capital on credit ratings. Social capital is often associated with trust and cultivated through one's personal networks. We show that firms which employ well-connected directors benefit with a higher credit rating. This result is amplified for firms that...
Persistent link: https://www.econbiz.de/10012982139
We consider a model in which productive bilateral links are formed between heterogeneous agents who differ in their innate productivity. Local information is complete but an outside planner can observe only network properties. We ask if consistent credit rating -- where agents' ratings are...
Persistent link: https://www.econbiz.de/10012863714
Entrepreneurial groups face a twinned challenge: recognizing new ideas and implementing them. Recent research suggests that connectivity reaching outside the group channels new ideas, while closure makes it possible to act on them. By contrast, we argue that entrepreneurship is not about...
Persistent link: https://www.econbiz.de/10003867671
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We investigate the impact of social networks on earnings using a dataset of over 20,000 senior executives of European and US firms. The size of an individual's network of influential former colleagues has a large positive association with current remuneration. An individual at the 75th...
Persistent link: https://www.econbiz.de/10011436060
We investigate the network topology of a comprehensive data set of the world-wide population of corporate entities. In particular, we have extracted information on the boards of all companies listed in Bloomberg's archive of company profiles in October, 2015, a total of almost 100; 000 firms. We...
Persistent link: https://www.econbiz.de/10011436477