Title: Corporate Directors’ Social Capital: How Centrality and Density Impact Board Monitoring
Abstract: A large body of management research has focused on agency theory’s presumed conflict between the interests of corporate management and corporate shareholders and the need for an effective board of directors as an organizational governance structure. Given the board’s oversight role over management, a power struggle develops between a company’s board and its management team, specifically the CEO. We introduce a novel measure of board power based on social network theory, applying measures of centrality, the number of interlocks held by outside directors, and density, the degree of intra-board connectedness resulting from director membership in multiple board committees.
Publication Year: 2010
Publication Date: 2010-12-01
Language: en
Type: article
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Cited By Count: 11
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