We examine whether political connections measured by political contributions influence the choice of terms included in government contracts awarded to firms. We construct an index of four “sweetheart” contract terms and find that firms making larger political contributions more frequently...

This study examines the effects of CEO social capital on corporate risk-taking around the world.We document a significant positive relation between CEO social capital and aggregate corporate risk-taking. Further, we find that CEOs with large social capital prefer riskier investment and financial...

In this study we examine the effect of boardroom social capital, defined as the aggregate benefitsfrom the social networks of outside directors, on director compensation. Using a large panel ofnine thousand firm-year observations for the period 2007-2013, we find that boardroom socialcapital is...

This study examines the issue of whether managerial social capital, defined as aggregate benefits of social obligations and informal contacts formed through social networks, has an impact on financial development. Utilizing a large cross-country sample for the period 1999– 2012, we provide...

This study examines the effects of managerial social capital on investment sensitivity to cash flow and Q. Using a large cross-country sample of companies for the period 1999–2012 and a traditional investment-Q framework, we discover that social capital reduces a firm's dependence on...