Abstract

http://ssrn.com/abstract=1121503
 
 

References (28)



 
 

Citations (23)



 


 



Corporate Finance Policies and Social Networks


Cesare Fracassi


University of Texas at Austin

October 29, 2014

AFA 2011 Denver Meetings Paper

Abstract:     
This paper shows that managers are influenced by their social peers when making corporate policy decisions. Using biographical information about executives and directors of U.S. public companies, we de fine social ties from current and past employment, education, and other activities. We fi nd that more connections two companies share with each other, more similar their capital investments are. To address endogeneity concerns, we find that companies invest less similarly when an individual connecting them dies. The results extend to other corporate finance policies. Furthermore, central companies in the social network invest in a less idiosyncratic way, and exhibit better economic performance.

Number of Pages in PDF File: 57

Keywords: Corporate Finance Policy Decisions; Social Networks; Capital Investments

JEL Classification: G31, L14

working papers series





Download This Paper

Date posted: April 18, 2008 ; Last revised: October 30, 2014

Suggested Citation

Fracassi, Cesare, Corporate Finance Policies and Social Networks (October 29, 2014). AFA 2011 Denver Meetings Paper. Available at SSRN: http://ssrn.com/abstract=1121503 or http://dx.doi.org/10.2139/ssrn.1121503

Contact Information

Cesare Fracassi (Contact Author)
University of Texas at Austin ( email )
Red McCombs School of Business
1 University Station B660
Austin, TX 78712
United States
Feedback to SSRN


Paper statistics
Abstract Views: 6,946
Downloads: 1,818
Download Rank: 4,300
References:  28
Citations:  23

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.281 seconds