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Small worlds and board interlocking in Brazil: a longitudinal study of corporate networks, 1997-2007

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  • Mendes-Da-Silva, Wesley

Abstract

Social Network Analysis (SNA) is an emerging research field in finance, above all in Brazil. This work is pioneering in that it is supported by reference to different areas of knowledge: social network analysis and corporate governance, for dealing with a similarly emerging topic in finance; interlocking boards, the purpose being to check the validity of the small-world model in the Brazilian capital market, and the existence of associations between the positioning of the firm in the network of corporate relationships and its worth. To do so official data relating to more than 400 companies listed in Brazil between 1997 and 2007 were used. The main results obtained suggest that the configuration of the networks of relationships between board members and companies reflects the small-world model. Furthermore, there seems to be a significant relationship between the firm’s centrality and its worth, described according to an “inverted U” curve, which suggests the existence of optimum values of social prominence in the corporate network.

Suggested Citation

  • Mendes-Da-Silva, Wesley, 2011. "Small worlds and board interlocking in Brazil: a longitudinal study of corporate networks, 1997-2007," MPRA Paper 34152, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34152
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    Cited by:

    1. Shreya Biswas, 2016. "Small world of inter-firm network and firm's acquisition behaviour," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2016-003, Indira Gandhi Institute of Development Research, Mumbai, India.
    2. Julián Cárdenas, 2019. "Exploring the Relationship between Business Elite Networks and Redistributive Social Policies in Latin American Countries," Sustainability, MDPI, vol. 12(1), pages 1-17, December.
    3. Wesley Mendes-da-Silva, 2024. "Golf as an Innovation in the Teaching of Finance: Report on a Pioneering Experience," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 28(Vol. 28 N), pages 230075-2300.
    4. Luciano Rossoni & Cezar Eduardo Aranha & Wesley Mendes-Da-Silva, 2018. "The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market," Complexity, Hindawi, vol. 2018, pages 1-12, February.
    5. Luciano Rossoni & Cezar Eduardo Aranha & Wesley Mendes-Da-Silva, 2018. "Does the capital of social capital matter? Relational resources of the board and the performance of Brazilian companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(1), pages 153-185, March.
    6. Lélis Pedro Andrade & Aureliano Angel Bressan & Robert Aldo Iquiapaza, 2017. "Dual class shares, board of directors’ effectiveness and firm’s market value: an empirical study," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 21(4), pages 1053-1092, December.
    7. Biswas, Shreya, 2015. "Small World of Inter-firm Network an Firm's Acquisition Behaviour - An Evidence from India," MPRA Paper 67508, University Library of Munich, Germany.
    8. Gavin Smith & Olivia Vila, 2020. "A National Evaluation of State and Territory Roles in Hazard Mitigation: Building Local Capacity to Implement FEMA Hazard Mitigation Assistance Grants," Sustainability, MDPI, vol. 12(23), pages 1-18, November.

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    More about this item

    Keywords

    Board Interlocking; Social Network Analysis in Finance; Company Boards;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • G3 - Financial Economics - - Corporate Finance and Governance

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