We show that social capital has a strong mitigating effect on financial adviser misconduct in the United States. Moreover, advisers who have committed misconduct are also more likely to relocate to counties with a relatively lower level of social capital than that of his previously residing...

This paper employs the theoretical lens of social capital to examine social distancing behavior during the COVID-19 pandemic. By exploiting daily mobile GPS location data, we provide strong evidence for the diverse effects of the two constituents of social capital, civic norms and social...

Using a sample of 4,892 IPOs in the United States from 1990 to 2019, we establish that the level of social capital in the county of the IPO firm’s headquarters is negatively associated with the level of IPO underpricing. The relation holds for a range of robustness tests, including those...

We extend prior literature by showing that societal trust is a significant determinant of corporate investment policy. Firms in countries with a higher level of societal trust are less prone to underinvestment. We posit that the association between trust and underinvestment relates to a...

The paper investigates the motives of activity (entry and exit) of Private Equity (PE) investors in European companies. Investment of a PE firm is not viewed unambiguously. First, it is claimed that PE investment is made for the sake of seeking short-term gains by taking control and utilizing...

This paper studies the event history of business foundation. Three theoretical concepts of human, financial and social capital are linked to investigate variations over time of people's decision processes to become self-employed. Data from a cohort of Dutch inhabitants born in 1939/1940 who have...

Rooted in the notion of inclusive capitalism, the Bottom-of-the-Pyramid (BoP) approach argues for the simultaneous pursuit of profit and social welfare by creating markets for the poor. This idea has both been celebrated and criticized in the literature. We do neither in this paper. Instead, by...

The ability of foundations to build social capital has been considered insufficiently. Using a case study design describing a successful project with a network structure, this study presents abilities and characteristics of foundations that allow them to develop networks, norms, and trust, the...

By definition, measuring the social capital in firm-stakeholder relationships assesses the degree to which the company has met essential preconditions for good CSP. Previous studies identified the three most important dimensions of social capital as the structural (e.g., network ties), the...